US hits 3 Russian banks with sanctions over Ukraine

The US Treasury announced punitive sanctions on three leading Russian banks including the giant VTB on Tuesday to press Moscow over its support for rebels in Ukraine.

AFP| Last Updated: Jul 30, 2014, 02:39 AM IST

Washington: The US Treasury announced punitive sanctions on three leading Russian banks including the giant VTB on Tuesday to press Moscow over its support for rebels in Ukraine.

The sanctions banned any Americans or people in US jurisdictions from any new medium or long-term financing transactions with VTB Bank, its subsidiary Bank of Moscow and Russian Agricultural Bank.
All three are controlled by the Russian government.

The sanctions aim at choking off anything but short-term financing for the banks, which could inhibit their ability to build or maintain long-term lending business. Under the rules, are prohibited from transacting in or providing financing for any new debt from the banks for over 90 days.

The announcement came shortly after European authorities agreed fresh sanctions on Moscow, imposing restrictions on the finance, defense and energy sectors to increase the cost to Russia of its intervention in Ukraine.