MOSCOW, September 12 (RIA Novosti) – The United States Department of Treasury confirmed on Friday that it was expanding sanctions against Russian companies, and increasing the number of sanctioned Russian entities in the financial, energy and defense sectors.
This newest round of sanctions prohibits offering financing to Rostec, which deals in industrial technology products. It also adds Russia's largest bank, Sberbank, to the list of sanctioned financial institutions. Debt financing restrictions have been tightened from 90 days to 30 days for the other sanctioned banks: Bank of Moscow, Gazprombank, Russian Agricultural Bank, VEB, and VTB Bank.
The US Treasury Department also stated that "persons operating within Russia's defense and related material sector may now be subject to targeted sanctions under Executive Order 13662."
The treasury has also imposed new sanctions and strengthened existing sanctions targeting firms operating in Russia's defense sector.
The US blocked the assets of the following defense firms: Mytishchinski Mashinostroitelny Zavod, Kalinin Machine Plant, Dolgoprudny Research Production Enterprise, Almaz-Antey, and Tikhomirov Scientific Research Institute of Instrument Design.
"The treasury has also imposed sanctions that prohibit the export of goods, services (not including financial services), or technology in support of exploration or production for Russian deepwater, Arctic offshore, or shale projects that have the potential to produce oil, to five Russian energy companies – Gazprom, Gazprom Neft, Lukoil, Surgutneftegas, and Rosneft – involved in these types of projects. This measure complements restrictions administered by the Commerce Department and is similar to new EU measures published today. US persons have until September 26, 2014 to wind down applicable transactions with these entities pursuant to a general license that Treasury's Office of Foreign Assets Control issued today," US Treasury Department's official press statement said.
The Treasury Department is also restricting financing to Gazprom Neft.
"Today's actions demonstrate our determination to increase the costs on Russia as long as it continues to violate Ukraine's territorial integrity and sovereignty," according to Under Secretary for Terrorism and Financial Intelligence David S. Cohen's statement published on US Treasury website.
It's the fourth round of sanctions imposed by the United States this year.
The first package of sanctions was imposed by the United States back in March, in response to Crimea's reunification with Russia.
In April, the United States implemented sanctions against 7 Russian individuals and 17 Russian companies, accusing Moscow of escalating Ukrainian crisis.
In July, the United States added new Russian individuals to its list of Ukraine-related sanctions and introduced a so-called Sectoral Sanctions Identification List that affects companies and institutions across various sectors of the Russian economy.
Sanctions were applied against a number of Russian companies and banks, including Gazprombank and Vnesheconombank, also known as the Development and Foreign Economic Affairs Bank, as well as Rosneft and Novatek. The companies were denied access to US financial markets, while the US-based companies and individuals are prohibited from granting loans to them for more than 90 days.
Moscow has repeatedly stressed that it is not involved in the internal Ukrainian conflict, has called the language of sanctions "counterproductive," and said that such measures "threaten international peace and stability."
