The EU will sanction three Russian banks as part of its response to Russia’s decision to send troops to Ukraine, according to four diplomats.
The three banks are Rossiya Bank, Promsvyazbank and VEB. The sanctions will prevent each organization from doing business with EU companies, limiting their access to European capital markets and services, two of the diplomats said. The banks are on the EU sanctions list because of their ties to breakaway regions in eastern Ukraine that Russian President Vladimir Putin recognized as independent on Monday evening, one of the diplomats added.
According to an EU official, “the logic is to deprive the Russian state and government bodies of access to European capital markets”, and that “the idea is to cut off this access also to the central bank” .
The EU is penalizing banks under the same legal framework it used to enforce sanctions after Russia annexed Crimea from Ukraine in 2014 – an approach that could speed up the approval process, the EU said. one of the diplomats.
The banks are part of a broader set of sanctions that EU ambassadors approved on Tuesday. The full list includes other figures such as the 351 Russian lawmakers who approved the recognition of separatist territories in Ukraine. The total package should be finalized on Wednesday afternoon.