US sanctions don’t fully block Sber, other banks, unlike VTB

Business & Economy February 25, 2022, 1:33

VTB has been designated as an SDN, institutions listed as SDN face the maximum restrictions

WASHINGTON, February 25. /TASS/. US sanctions on Sber and some other Russian banks don’t fully block them from interacting with US companies and institutions, unlike the restrictions on VTB, according to US Treasury documents released on Thursday.

VTB has been designated as an SDN. Institutions listed as SDN face the maximum restrictions. Their assets are blocked, they are banned from transactions in dollars and any actions with US counterparts.

However, Sberbank and some other Russian banks are subject to CAPTA (Correspondent Account or Payable-Through Account Sanctions), which limit correspondent accounts. These accounts have to be closed within 30 days, no transactions will be executed. But assets of the banks on this list won’t be blocked and they will in principle be able to continue to do business with US partners, for example buy certain goods from them. The other entities, besides Sber, that were put on the CAPTA list include Gazprombank, Alfa Bank, Transneft, Russian Railways, RusHydro, Rostelecom, and Gazprom. Washington said the opportunity of these companies to raise capital in the US will be severely limited.

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