The United States tried to tighten sanctions against Russia on Sunday by blacklisting a number of financial executives and restricting the provision of professional services, even as the EU struggled to finalize its latest package of sanctions.
The United States has targeted Gazprombank executives for the first time, while banning companies from providing Russia with corporate services such as accounting and consulting.
However, diplomats said Hungary continues to hold back progress in Brussels on the proposed sixth package of EU sanctions, which will include a gradual oil embargo aimed at shrinking money sources in Moscow.
As Russia prepares for Monday’s Victory Day celebrations, the G7 and its allies are seeking to increase economic pressure on President Vladimir Putin’s regime. US President Joe Biden met with his G7 counterparts and Ukrainian leader Vladimir Zelensky on Sunday as part of a coordinated demonstration of support for the war-torn country.
A senior Biden administration official said the new US sanctions were aimed at 27 executives of Gazprombank, Russia’s third-largest creditor and a subsidiary of state-owned energy company Gazprom. But the measures did not freeze the company’s assets or ban deals with it, as this is the main way Russia sells gas to Europe.
“We are sanctioning some of their top business managers, they are the people sitting at the top of the organization to create a chilling effect. . . “We don’t want Gazprombank to be seen as a safe haven,” said a senior Biden administration official.
Sberbank executives are also targeted, while Russian officials accused of human rights abuses will face visa restrictions. The new US package prohibits companies from providing accounting, consulting and other services to Russia in an attempt to prevent Moscow from reformulating business strategies to circumvent Western sanctions.
The EU is also trying to push through its latest package of sanctions, which will include a phasing out of Russian oil, as well as measures for professional services. However, the EU ambassadors’ meeting in Brussels on Sunday ended without a deal, meaning the 27 member states will continue negotiations this week.
Recommended
Diplomats stressed that progress has been made, but Hungarian Foreign Minister Peter Siarto said Budapest was not yet ready to agree to an oil ban.
“We have voted in favor of all the sanctions packages so far, but the latter would destroy the security of energy supply in Hungary, which is still on its feet,” Siarto wrote on Facebook. “Until there is a solution to the problem posed by the Brussels proposal, we will not vote in favor of this package.
According to EU proposals, most countries will have to ban Russian crude oil within six months, but Hungary and Slovakia will have until the end of 2024, and the Czech Republic will be offered until June 2024.
Also Sunday, US First Lady Jill Biden made a surprise trip to Ukraine in another signal of support for Washington after the United States stepped up aid to the country in recent weeks. She met with Ukraine’s First Lady Olena Zelenska in a town near the Slovak border.
The ban on professional services in the United States affects accounting firms and consulting firms from the Big Four, which have begun to withdraw from Russia. The release could take several months, company officials said.
Legal services will be excluded from the ban, a senior administration official said, so that companies seeking due process through U.S. attorneys can continue to do so. The official added that this may change in the future.
The United States has also blacklisted eight Russian shipping and other maritime companies that the United States says have supported Russia’s efforts to supply troops, occupy Crimea and exploit energy reserves. The United States has blocked 69 ships associated with these companies.
The US package includes new export controls and sanctions against three of Russia’s most popular state television channels. It also bans the export of industrial engines, bulldozers and other industrial consumables, the official said. The EU will impose restrictions on the export of chemicals.
“These new controls will further limit Russia’s access to the components it needs to replenish and rebuild its military capabilities,” a senior administration official said.
Add Comment