WASHINGTON — On Thursday, sanctions were imposed on Gazprombank, Russia’s third largest financial institution, along with its six foreign subsidiaries. This decision aims to restrict Russia’s ability to circumvent the numerous sanctions that have been in place since the onset of its invasion of Ukraine in February 2022.

Treasury Secretary Janet Yellen stated that targeting Russia’s largest non-sanctioned bank would further weaken the country’s military capabilities. She emphasized that these sanctions are designed to make it increasingly difficult for the Kremlin to bypass U.S. sanctions and secure funding and resources for its military operations.

Alongside Gazprombank, over 50 Russian banks with international ties, 40 Russian securities registrars, and 15 finance officials were also sanctioned. This announcement followed President Joe Biden’s weekend decision to authorize Ukraine to utilize U.S.-provided missiles for striking deeper into Russian territory, relaxing prior restrictions on the use of longer-range weaponry as Russia deploys additional troops from North Korea to bolster its war efforts.

Additionally, the Pentagon revealed on Wednesday that it will supply Ukraine with at least $275 million worth of new weapons. This package includes an unspecified number of antipersonnel land mines. The Biden administration is acting swiftly to help Ukraine defend itself against Russian aggression, particularly in anticipation of President-elect Donald Trump’s upcoming term.

These sanctions will bar sanctioned individuals and entities from accessing any property or financial holdings located in the U.S. and will prohibit American businesses and citizens from engaging in economic activities with them.

Previously, Canada and the United Kingdom had already imposed sanctions on Gazprombank. According to the Treasury Department, Gazprombank plays a critical role in financing Russia’s military efforts, facilitating payments to soldiers and compensating families of those who have died in combat.

Interestingly, Gazprombank has also been involved in managing payments from foreign customers for Russian natural gas supplies to Europe. Initial sanctions did not target Russian gas due to Europe’s significant reliance on it, a dependency that has lately diminished to about 18% of the continent’s imports. Following a reduction of Russian gas supplies in 2022, Europe faced an energy crisis. Meanwhile, European nations and utility companies have sought alternative energy sources, particularly liquefied natural gas imported by ship from the U.S. and Qatar.

Ukraine has announced plans to suspend the flow of Russian gas through a pipeline to Europe by the end of the year, which currently accounts for approximately 4% of Europe’s gas imports. Recently, Gazprom halted shipments through this pipeline to Austria’s OMV due to a commercial dispute. OMV has stated that it has sufficient reserves and can secure alternative supplies. The European Union has set a nonbinding target to end all imports of Russian gas by 2027.