Full blocking sanctions on Sberbank, Russia’s largest state-owned bank, and Alfa-Bank, Russia’s largest private bank, were imposed Wednesday by the Treasury Department “in response to Russia’s continued brutal war against Ukraine and atrocities against Ukrainian citizens,” the agency said.
Additionally, the Treasury said it was also targeting family members of President Vladimir Putin and Foreign Minster Sergey Lavrov, as well as Russian Security Council members “who are complicit in the war against Ukraine.”
In addition, President Biden issued an executive order banning new investment in the Russian Federation and the “provision of certain services to any person located in the Russian Federation by U.S. persons, wherever located,” Treasury said.
“Russia’s military forces have committed heinous atrocities in Ukraine and the global community must hold them to account,” said Treasury Secretary Janet L. Yellen. “Today we are taking additional steps to cut off Russia from international markets in response to Putin’s continued brutality. This serious action, including fully blocking Russia’s largest bank and banning new investment in Russia, will further restrict Putin’s ability to fund and supply his war.”
Treasury described the public joint stock company Sberbank of Russia as “uniquely important” to the Russian Federation economy, noting that the banking firm holds about a third of all bank assets in Russia. Treasury also noted that Sberbank is the largest financial institution in Russia, majority-owned by the Government of the Russian Federation (GoR), and holds the largest market share of savings deposits in the country, is the main creditor of the Russian economy, and is deemed by the GoR to be a systemically important financial institution.
Treasury also said it is designating the 42 Sberbank subsidiaries for being owned or controlled by, or for having acted or purported to act for or on behalf of, directly or indirectly, Sberbank, a person whose property and interests in property are blocked pursuant the president’s order. Those firms are:
- Subsidiary Bank Sberbank of Russia Joint Stock Company is a bank located in Kazakhstan.
- Joint Stock Company Sberbank is a bank located in Ukraine.
- Open Joint Stock Company BPS-Sberbank is a bank located Belarus.
- Auction Limited Liability Company is an entity engaged in financial transactions in Russia.
- IKS Joint Stock Company is a real estate, security brokering, fund management, depository credit intermediation, as well as other activities auxiliary to financial intermediation, company located in Russia.
- Joint Stock Company Sberbank Leasing is a bank located in Russia.
- Sovremennye Tekhnologii Limited Liability Company is entity engaged in real estate activities in Russia.
- Limited Liability Company Sberbank Capital is a mutual and pension fund or trust located in Russia.
- Joint Stock Company Sberbank Automated Trade System is a vendor of financial securities on electronic trading platforms located in Russia.
- Limited Liability Company Promising Investments is a financial company located in Russia.
- Limited Liability Company Sberbank Financial Company is a financial company located in Russia.
- Limited Liability Company Sberbank Investments is a financial company located in Russia.
- Joint Stock Company Sberbank Technologies is an entity engaged in system integration, automation, business processes, and information technology consulting in Russia.
- Joint Stock Company Loyalty Programs Center is an entity engaged in loyalty program administration for Sberbank in Russia.
- Sberbank Europe AG is a bank located in Austria.
- Insurance Company Sberbank Life Insurance Limited Liability Company is an insurance company located in Russia.
- Joint Stock Company Business Environment is an entity engaged in data processing, hosting, and related activities in Russia.
- SB Securities SA is a mutual and pension fund or trust located in Luxembourg.
- Limited Liability Company Active Business Consult is a debt recovery agency providing collection and adjustment services in Russia.
- Limited Liability Company Sberbank Service is an entity engaged in the provision of computer and office machine repair and maintenance services in Russia.
- Joint Stock Company Sberbank Private Pension Fund is a mutual and pension fund or trust located in Russia.
- Limited Liability Company Sberbank Insurance Broker is a financial and insurance company located in Russia.
- Insurance Company Sberbank Insurance Limited Liability Company is an insurance company located in Russia.
- Limited Liability Company Korus Consulting CIS is an entity engaged in information technology consulting services in Russia.
- Limited Liability Company Sberbank CIB Holding is a financial company located in Russia.
- Limited Liability Company Sberbank Factoring is a financial company located in Russia.
- Limited Liability Company Rutarget is a web-based automated advertising software developer in Russia.
- Limited Liability Company Sberbank Real Estate Center is an entity engaged in software development for Sberbank’s real estate and mortgage services in Russia.
- Limited Liability Company Digital Technologies is a provider of business management services in Russia.
- Joint Stock Company Raschetniye Resheniya is a bank located in Russia.
- Vydayushchiesya Kredity Microcredit Company Limited Liability Company is a financial and insurance company in Russia.
- Tekhnologii Kreditovaniya Limited Liability Company is an Internet-based financial activities company located in Russia.
- Sber Legal Limited Liability Company is an entity engaged in provision of legal services in Russia.
- Arimero Holding Limited is a financial, insurance, and holding company located in Cyprus.
- Barus Limited Liability Company is an entity engaged in real estate activities in Russia.
- Setelem Bank Limited Liability Company is a bank located in Russia.
- Joint Stock Company Strategy Partners Group is an entity engaged in management and financial consulting services in Russia.
- Sber Vostok Limited Liability Partnership is an entity engaged in retail and wholesale trade in Kazakhstan.
- Limited Liability Company Yoomoney is a bank located in Russia.
- Bankruptcy Technology Center Limited Liability Company is an entity engaged in information technology-related activities in Russia.
- Limited Liability Company Market Fund Administration is a mutual and pension fund or trust located in Russia.
- Joint Stock Company United Credit Bureau is a credit history bureau operating in Russia.
Treasury added that all entities owned 50% or more, directly or indirectly, by Sberbank are blocked under the order even if not designated by OFAC.
U.S. Treasury Escalates Sanctions on Russia for Its Atrocities in Ukraine