By Michael Hernandez
WASHINGTON
The Obama administration sanctioned Russia’s largest bank Friday as the U.S. moved to expand sanctions on Russia’s financial, energy and defense sectors.
“These steps underscore the continued resolve of the international community against Russia’s aggression,” U.S. Secretary of Treasury Jack Lew said in a statement.
Washington’s actions were taken in cooperation with the European Union which imposed its own set of sanctions on Moscow earlier Friday. The U.S. and the EU blame Russia for destabilizing Ukraine.
“It is essential that Russia work with Ukraine and other international partners to find a lasting settlement to the conflict. If Russia does so, these new sanctions could be suspended,” Lew said.
As part of Friday’s actions, Washington blacklisted Sberbank of Russia, the country’s largest bank. Sberbank holds roughly one-quarter of Russian banking assets, and one-third of its banking capital, according to the U.S. Treasury Department.
The bank, along with five others that were previously sanctioned, also had financial restrictions tightened to reduce the maturity period for new debt from 90 days to 30 days.
Also prohibited was the export of goods, services or technology to five companies “in support of exploration or production for Russian deepwater, Arctic offshore, or shale projects that have the potential to produce oil,” according to the Treasury. Those five companies are Gazprom, Gazprom Neft, Lukoil, Surgutneftegas, and Rosneft.
The Treasury Department also opened the door for targeted sanctions against individuals within Russia’s defense and related sectors, and "designated and blocked the assets of five Russian state-owned defense technology firms – OAO ‘Dolgoprudny Research Production Enterprise,’ Mytishchinski Mashinostroitelny Zavod OAO, Kalinin Machine Plant JSC, Almaz-Antey GSKB, and JSC NIIP."
The Ukrainian government and Russian-backed rebels in the east of the country reached a tenuous cease-fire in the contested regions of Luhansk and Donetsk a week ago.
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