US imposes sanctions on Gazprombank executives for the first time
Meanwhile, Europe is scrambling to reach an agreement on oil sanctions and the UK is tightening its trade measures
The US on Sunday tightened its sanctions against Russia, blacklisting a number of financial sector executives and restricting the provision of professional services, while the EU struggled to pass its latest sanctions package.
The US targeted Gazprombank executives for the first time, banning companies from providing business services such as accounting and consulting to Russia.
However, according to diplomats, Hungary continues to delay progress in Brussels on the EU's proposed sixth package of sanctions, which would include a phased-in oil embargo to cut Moscow's funding sources.
As Russia prepares for Monday's Victory Day celebrations, the G7 and their allies are trying to increase economic pressure on President Vladimir Putin's regime. US President Joe Biden met with his G7 peers and Ukrainian Prime Minister Volodymyr Zelensky on Sunday as part of a coordinated campaign of support for the war-torn country.
A senior Biden administration official said the US sanctions targeted 27 executives at Gazprombank, Russia's third-biggest lender and a subsidiary of state-owned energy company Gazprom. However, the measures did not envisage freezing the company's assets or prohibiting transactions with it, since it is the main supplier of Russian gas to Europe.
"We are sanctioning some of their top executives who sit at the top of the company to create a deterrent effect...we don't want Gazprombank to be seen as a safe haven," said senior Biden administration official.
Sberbank executives have also been targeted, while Russian officials accused of human rights abuses face visa restrictions. The US package bans companies from providing accounting, consulting and other services to Russia to prevent Moscow from reshaping its business strategies to circumvent Western sanctions.
The EU has also been trying to enforce its latest sanctions package, which includes a phased ban on Russian crude and measures on professional services. However, a meeting of EU ambassadors in Brussels on Sunday ended without an agreement, leaving the 27 member states to continue negotiations this week.
Diplomats stressed that there had been progress, but Hungarian Foreign Minister Péter Szijjártó said Budapest was still not ready to agree to the oil ban.
"We have voted in favor of all sanctions packages so far, but this last one would destroy Hungary's energy security, which is still very strong," wrote Szijjártó on Facebook. "Until there is a solution to the problem raised by the Brussels proposal, we will not vote for this package."
Under the EU's proposals, most countries would have to ban Russian crude within six months, but Hungary and Slovakia would have until the end of 2024, and the Czech Republic would have until June 2024.
Meanwhile, the UK has announced a package of sanctions against Russia and Belarus affecting trade worth £1.7 billion.
The measures include import tariffs on £1.4 billion worth of goods, including platinum and palladium, and export bans. The total value of goods affected by UK sanctions is now more than £4 billion.
The planned export bans affect critical materials such as chemicals, plastics, rubber and machinery worth more than £250m.
Anne-Marie Trevelyan, UK Secretary of State for International Trade, said: "This far-reaching package of sanctions will further damage the Russian war machine."
Also on Sunday, US First Lady Jill Biden made a surprise trip to Ukraine to send another show of support for Washington after the US increased aid to Kyiv in recent weeks. She met Ukrainian First Lady Olena Zelenska in a town near the border with Slovakia.
The US ban on professional services affects the Big Four accounting and consulting firms, which have begun to pull out of Russia. The withdrawal could take several months, company officials said.
Legal services are exempt from the ban, the senior administration official said, allowing companies that turn to U.S. attorneys to continue to do so. The official added that this could change in the future.
The US also blacklisted eight Russian shipping and other maritime companies that Washington said had aided Russia's efforts to resupply troops, occupy Crimea and exploit energy reserves. The US blocked 69 ships linked to these companies.
The US package includes export controls and sanctions against three of Russia's most popular state-run TV channels. Exports of industrial engines, bulldozers and other manufactured goods have also been banned, the official said. The EU will introduce export restrictions on chemicals.
"These new controls will further limit Russia's access to components it needs to refill and replenish its military capabilities," the senior administration official said.