In a significant and painful move during the closing months of his administration, U.S. President Joe Biden has enacted sanctions that have critically affected Russia's economy. A central target of these sanctions is Gazprombank, a crucial financial hub for Russia's international trading operations. Also on the sanctions list is BrokerCreditService (BCS), identified as a major player in illicit financial activities within Russia, reports VChK-OGPU, a well-connected Russian Telegram channel with ties to the security services.

The U.S. delivered this blow amidst Russia’s strike on Ukraine using the new missile "Oreshnik." Approximately 50 Russian banks, which facilitated international trade, are now under these sanctions. "The U.S. has essentially targeted all custodians, registrars, and special depositories, signaling foreign shareholders to exit Russian jurisdiction," the Telegram channel reports.

Another critical aspect of the sanctions is the inclusion of Russia's "System for Transfer of Financial Messages" (SPFS), akin to the global SWIFT system. Entities aligning with SPFS face the threat of severe secondary sanctions. BCS, once aspiring to be a key player in facilitating imports through operations in Armenia and the UAE, now finds its activities hindered. It was previously involved in unfreezing Western-held assets.

This strategic isolation is forcing Russia away from global trade. The country's ability to sell energy and other resources is hampered, and imports are becoming more challenging.

Adding to the turmoil, the sudden resignation of Olga Skorobogatova, the Bank of Russia's first deputy governor, highlights escalating economic distress.

"Adding insult to injury, the Central Bank's top brass, previously untouched, are now sanctioned. Skorobogatova likely resigned not from emotional impulse but due to deteriorating economic conditions," notes VChK-OGPU. The outlet suggests that discussions around freezing bank deposits are intensifying.

  War in Ukraine, Russian Economy

Comments