The United States Treasury has expanded sanctions on Russian financial institutions, adding Ak Bars and Sinco-Bank to the updated sanctions list released by the ministry. This move follows prior restrictions on a broader group of lenders, including MTS Bank, Ural Reconstruction and Development Bank, and eleven other credit institutions such as banks in St. Petersburg and Zenit. As a result, the tally of sanctioned Russian banks has risen to thirteen.
On the morning of September 14, the Treasury further extended restrictive measures against Russia. The new action blacklisted more than twenty Russians and over a hundred companies, spanning industries from automotive to manufacturing and infrastructure. Notable entities affected include AVTOVAZ, Moskvich, Transmashholding, and toll road operator Avtodor, among others, reflecting a wide scope of impact across the economy. [Source: U.S. Treasury]
In addition to financial sanctions, roughly twenty companies involved in mineral extraction, including diamond operations, were targeted. Among these are Northern Diamond Company and AGD Diamonds, illustrating the breadth of asset restrictions beyond banking.
The U.S. Treasury stated that Russian entities already under sanctions are attempting to circumvent the measures by routing activities through smaller banks and asset management firms. This underscores ongoing enforcement challenges and the careful monitoring required to maintain the effectiveness of the sanctions regime. [Source: U.S. Treasury]
To provide historical context, sanctions on Russia’s banking sector began toward the end of February 2022, in response to Russia’s actions at the start of a special operation in Ukraine. The largest institutions, including VTB, Sberbank, and Alfa-Bank, were placed under full blocking measures. In total, the restrictions affected a substantial portion of the Russian banking system’s assets, as outlined in the U.S. Treasury’s February 24, 2023, update. [Source: U.S. Treasury]
These actions are part of a broader strategy viewed by U.S. policymakers as a tool to influence economic activity and to respond to geopolitical developments. Critics have warned about the potential costs to American prosperity, while supporters argue the measures increase pressure on Russia’s financial sector and related industries. [Source: U.S. Treasury]