Despite efforts to expand sanctions against Moscow, Gazprombank remains a key payment channel for Russia‘s oil and gas exports.
The Biden administration recently announced measures to limit Putin’s funding for the 2022 invasion, including targeting foreign financial institutions supporting Moscow, restricting Russia’s IT access, and focusing on entities facilitating sanctions evasion.
Although Gazprombank was initially sanctioned by the U.S., it was not included in the European Commission’s list of sanctioned banks in March 2022.
Andriy Yermak, Chief of Staff to Ukrainian President Zelensky, criticized the lack of action against Gazprombank, highlighting its role in funding Putin’s aggression.
Despite being part of SWIFT, Gazprombank continues to monitor transactions in dollars and euro, raising concerns about the effectiveness of current sanctions.
One reason for the omission of Gazprombank from further sanctions could be the potential impact on natural gas imports in Europe, a crucial consideration in avoiding disruptions.
The United Kingdom imposed sanctions on Gazprombank in March 2022, restricting British companies from engaging with them and blocking access to British resources.
Starting January 25, 2023, Gazprombank will no longer be able to conduct U.S. dollar transfers, indicating a tightening of restrictions.
With the U.S. Office of Foreign Assets Control granting licenses for certain activities involving sanctioned Russian banks, there are questions about why Gazprombank was not included and how it impacts energy transactions.
Putin’s decision to cut off gas supplies emphasizes the leverage he holds over key EU gas-dependent countries like Austria and Slovakia.
While some EU nations may call for Gazprombank expulsion, Dholakia believes the EU’s move could influence the U.S. decision to sanction the bank.