U.S. Treasury Imposed sanctions on five Kremlin-connected elites, as well as two major Russian state-owned financial institutions. The United States took action to respond to President Vladimir Putin’s decision to recognize the so-called Donetsk and Luhansk People’s Republics (DNR and LNR) as “independent” states.
Kremlin-Connected Elites include Aleksandr Bortnikov, the director of the Federal Security Service and a permanent member of the Security Council of the Russian Federation, and his son.
Others include Sergei Kiriyenko, the first deputy chief of staff of the presidential office, and his son, and Petr Fradkov, the chairman and CEO of Promsvyazbank Public Joint Stock Company (PSB).
Biden earlier announced the first tranche of sanctions against Russia The sanctions target two large Russian financial institutions - Corporation Bank for Development and Foreign Economic Affairs Vnesheconombank (VEB), PSB, and their 42 subsidiaries.
VEB and PSB can no longer do business in the US, are cut off from the US financial system, and all assets under US jurisdiction will be immediately frozen, the Treasury said in a statement.
"Today’s action constrains Russia’s ability to finance defense-related contracts and raise new funds to finance its campaign against Ukraine," it said.
"VEB and PSB are state-owned institutions that play specific roles to prop up Russia’s defense capability and its economy," it added.
While VEB has a $53 billion asset portfolio servicing Russia’s sovereign debt with a loan portfolio of over $20 billion, PSB services nearly 70% of Russia’s defense contracts and provides banking and personal finance to Russian military personnel, it noted.
In addition, the sanctions included five vessels:
1. Baltic Leader, a Russian-flagged roll-on roll-off cargo vessel with a gross registered tonnage of 8831;
2. Linda , a Russian-flagged crude oil tanker with a gross registered tonnage of 61991;
3. Pegas, a Russian-flagged crude oil tanker with a gross registered tonnage of 61991;
4. Fesco Magadan , a Russian-flagged container ship with a gross registered tonnage of 7519;
5. Fesco Moneron, a Russian-flagged container ship with a gross registered tonnage of 7519.
