Washington is trying to take tougher steps against banks with ties to Russia – #Washington #tougher #steps #banks #ties #Russia
BERLIN, Feb 14 (Reuters) – As Western powers seek to step up efforts to isolate Moscow USA Russia may impose sanctions on more banks associated with and will strengthen enforcement against any laws that evade existing regulations.
The comments come as Western diplomats try to agree on a new package of sanctions for the February 24 anniversary of Russia’s aggression against Ukraine.
USA James O’Brien, head of the State Department’s Sanctions Coordination Office, told Reuters: “We Russia bank we have immobilized approximately 80% of the assets in the sector”.
“We are looking at additional banks and financial institutions to see how Russia behaves with the outside world. There will probably be more action.”
Immediately after Moscow’s invasion of Ukraine in February of last year, the West several Russia blocked its bank’s access to the international SWIFT payment system, forcing Sberbank ( SBER.MM ) and VTB ( VTBR.MM ) to suspend operations across much of Europe.
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Western governments also about 300 of the reserves of the Central Bank of Russia billion has frozen the dollar.
But not all ties are severed. UniCredit (CRDI.MI) and Raiffeisen Bank Some including International (RBIV.VI). Europe banks have big businesses there and have to follow local rules to give soldiers pay holidays.
of Russia gas Gazprombank, the financial arm of exporter Gazprom ( GAZP.MM ), partially escaped the harsh sanctions because it manages payments for energy.
European Union officials of their countries told Reuters agency that some Europe It is unclear how ambitious the new restrictions will be, given the willingness of other countries, including Hungary and, to a lesser extent, Germany, to ease additional restrictions to soften the economic impact.
United States and European Union regarding sanctions unit have tried to put on a front, though their punishments are different, in part because Europe has closer economic ties to Russia.
Ukraine He has called for more sanctions, including targeting Russia’s nuclear sector, but is likely to be disappointed.
Two European officials, speaking on condition of anonymity, said additional financial sanctions were possible, but that efforts to target Russia’s nuclear sector, which Poland also defends, were unlikely to succeed.
Hungary has already said that it will veto such a step.
Attempts to target Gazprombank would still be met with resistance in Europe because of its importance in processing payments for Russian gas used by Hungary and other EU states, one of the people said.
PROTECTION
The United States will strengthen enforcement, something the EU hopes to improve, O’Brien said.
“We are now looking at how sanctions, including financial sanctions, can be most effective.
“We execution we will take additional measures to increase the intensity of our measures,” he said, adding that although the sanctions allow global trade in Russian oil and other products, USA will check the banks and their customers.
“We are always investigating which companies and parties may benefit from Russian-related financial transactions,” he said.
As the US dollar plays a central role in global trade, the US has the power to enforce sanctions, while the EU, some of which have fewer resources, national depends on the authorities.
The US Treasury over the past year has sought to circumvent Russia’s restrictions 10Sanctioned more than 0 individuals and legal entities and well-known oligarchs of Russia law charged for violations.
Germany, by contrast, has struggled to impose sanctions on oligarchs because of legal restrictions and reliance on multiple authorities, people familiar with the matter said.
State Secretary of the German Economy Ministry Franziska Brantner said: “This year we need to focus on making sure we stop evading sanctions.” “And part of the tenth sanctions package is looking.”
Russia invaded Ukraine in February of last year, and in order to “reduce” the country, “special military “operation”, but according to Western leaders, it is nothing more than land grabbing.
of Ukraine the eastern city of Bakhmut this week NATO military The alliance leader came under heavy artillery fire as local officials backed up reports that a major new Russian offensive had begun just days before the invasion’s first anniversary.
EU trade commissioner Valdis Dombrovskis recently said that “Russia is actively looking for ways to circumvent Western sanctions”, adding that new EU measures will seek to “limit sanctions evasion”.
Irish Finance Minister Michael McGrath told reporters this week that “European Union there is a desire to go further.” “We are all horrified by what we have witnessed regarding Russia’s continued aggression against Ukraine.”
Analysts say there is ample room for further sanctions against Russia.
“While most of Russia’s important banks have been sanctioned, there’s a lot outside that perimeter,” said Nicholas Veron, a fellow at the Peterson Institute for International Economics think tank in Washington.
“Nevertheless, Russia has proven that it can adapt.”
To equip the Russian army, said Guntram Wolff, director general of the Berlin think tank of the German Council on Foreign Relations dollars bank can use their accounts: “Tougher financial sanctions will further weaken the Russian army.”
Additional by Gabriela Baczynska in Brussels and Daphne Psaledakis in Washington report; Written by John O’Donnell; Edited by Jane Merriman
Our standards: Thomson Reuters Trust Principles.
2023-02-14 21:32:22
Source – reuters
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