U.S. Hits All Major Russian Banks With Sanctions

The United States on Thursday imposed sanctions on Russia in retaliation for its invasion of Ukraine, targeting its two biggest banks and members of the elite in new measures as Washington warned more action could come, Daphne Psaledakis, Simon Lewis, and Matt Stepaknick reported for Reuters.

Photo Insert: Ukrainian President Volodymyr Zelenskyy has reportedly taken up arms.

Among the targets were five major Russian banks, including state-backed Sberbank and VTB, the country's two largest lenders, as well as wealthy individuals and their families. The US also announced new export control measures.

The US Treasury Department said US banks must sever their correspondent banking ties - which allow banks to make payments between one another and move money around the globe - with Russia's largest lender, Sberbank, and 25 of its subsidiaries within 30 days.

The restrictions aim to hurt the Russian economy by blocking Sberbank from processing and settling payments within the US financial system.

But Washington stopped short of wielding the US government's most powerful sanctioning tool against the bank and did not add it to the Specially Designated Nationals (SDN) list, which would freeze any of its US assets. But a senior U.S. administration official warned that the United States could further tighten sanctions against Russia if it escalates its aggression against Ukraine.

"We still have all options on the table. We have room to further escalate as Russia's aggression escalates," the official said.

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