A fresh round of United States sanctions on Thursday targeted people and entities involved in Russia's financial sector, including one of the country's richest men, Vladimir Potanin, his family and a commercial bank he acquired this year, increasing pressure on Moscow over its invasion of Ukraine.
The Treasury Department's Office of Foreign Assets Control imposed sanctions on more than 40 people linked to the Russian financial sector and 17 subsidiaries of VTB Bank Public Joint Stock Company – also known as VTB Bank – Russia's second-largest bank. VTB Bank was designated for sanctions in February.
The State Department issued separate diplomatic designations on the people and companies.
Western nations and other allies have imposed a range of penalties meant to crush Russia's finances due to Russian President Vladimir Putin's invasion of Ukraine.
Russia's Central Bank faces restrictions that target access to the more than $600 billion in reserves that the Kremlin has at its disposal. Allied countries have blocked financial transactions with Russia's Central Bank that involve gold.
The country has also been disconnected from the SWIFT financial messaging system, which daily moves countless billions of dollars around more than 11,000 banks and other financial institutions around the world. Countless banks have been blocked, including Sberbank, which holds one-third of all bank assets in Russia.
Potanin, 61, also served as Russia's deputy prime minister. He, his wife, adult children and a yacht named Nirvana were designated for sanctions on Thursday, as well as Rosbank, a Russia-based commercial bank that Potanin acquired in 2022.
Russia's Central Bank considers Rosbank to be a systemically important credit institution, according to the Treasury. The United Kingdom and Canada designated Rosbank earlier this year.
Potanin is the largest shareholder at Nornickel, which was not designated on Thursday. Interros owns 36% of Nornickel, the world's top palladium and refined nickel producer.
"The United States continues to impose costs on Russia for its war of aggression against Ukraine," Secretary of State Antony Blinken said in a statement. "Russia's attacks have devastated Ukraine's critical infrastructure and caused extraordinary death and destruction."
The sanctions and designations deny the people and companies access to any property or financial assets held in the U.S., and the ability to travel to the U.S.
"By sanctioning additional major Russian banks, we continue to deepen Russia's isolation from global markets," said Brian Nelson, the Treasury's undersecretary for terrorism and financial intelligence.
"Today's designations by the United States, together with actions taken by our international partners, will further inhibit the Putin regime's ability to fund its horrific war against Ukraine."
"By sanctioning additional major Russian banks, we continue to deepen Russia’s isolation from global markets,” the Treasury's Under Secretary for Terrorism and Financial Intelligence Brian Nelson said in the statement.
"Today’s designations by the United States, together with actions taken by our international partners, will further inhibit the Putin regime’s ability to fund its horrific war against Ukraine."
Rosbank said the U.S. sanctions "will not have a material impact on our operations. We maintain all best practices and standards for the benefit of our clients."
VTB said the U.S. sanctions on companies affiliated with VTB "are yet another proof of the desire to put pressure on businesses, partners and counterparties for their own benefit."
"This is a politicized decision, which, however, will not particularly affect our work. VTB itself has been living under sanctions since February 2022. We know how to adapt."
Nornickel's second-largest shareholder, aluminum producer Rusal, said on Thursday that mitigating sanctions risks should be the absolute priority of Nornickel's management.
"Rusal, as a key shareholder, is interested in preserving Nornickel's sustainability... Rusal is not under sanctions, therefore its presence as a shareholder at Nornickel will contribute to Nornickel's sustainability."
In 2021 Nornickel was the world's top producer of refined nickel, used to make stainless steel and important for electric vehicle batteries. It also extracted 10% of the world's platinum and 40% of its palladium, which is used in car exhausts.
The State Department also imposed sanctions on members of the board of directors of state-owned Russian Railways, members of the government, including the governor of the Moscow region, as well as their family members.
Also designated were seven "Russia-appointed proxy authorities in Ukraine," the State Department said.
