In response to what President Joe Biden called “major war crimes” by Russian forces in Ukraine, the US imposed a new round of sanctions this week against Russian banks and elites, including a ban on Americans investing in Russia.
According to US officials, the new sanctions target Russia’s Sberbank, which controls one-third of the country’s total banking assets, and Alfabank, Russia’s fourth largest financial institution. The latest measures, however, do not apply to energy transactions, they said.
According to the officials, sanctions are also being imposed on Russian President Vladimir Putin’s two adult daughters, Russian Foreign Minister Sergei Lavrov’s wife and daughter, and senior members of Russia’s security council.
“There’s nothing less happening than major war crimes,” Biden said in a speech to labour leaders, referring to the bodies of civilians shot to death in the Ukrainian town of Bucha, which was retaken from Russian forces.
“Responsible nations have to come together to hold these perpetrators accountable,” he said. “And together with our allies and our partners, we’re going to keep raising economic costs and ratchet up the pain for Putin.”
A mass grave and the bodies of people shot at close range, some of them bound, have emerged from Bucha, prompting calls for tougher action against Moscow and an international investigation.
Russia, which says it initiated a “special military operation” in Ukraine on February 24, denies targeting civilians and claims the killings were fabricated by the West.
The assets of Sberbank and Alfabank “touching the US financial system” would be frozen as a result of Wednesday’s “full blocking sanctions,” according to the White House.
As part of a concerted alliance effort to “starve Putin’s war machine,” Britain froze Sberbank’s assets and announced that it will block Russian coal imports by the end of the year.
The new penalties, according to Sberbank, would have little effect on their business.
“The sanctions will not have a significant impact on the bank’s operations and will not affect service to Russians as the system has already adapted to the previous restrictions,” Sberbank said in a statement.