Russia’s Gazprombank Preparing for U.S. Sanctions Over Ukraine
By Jason Corcoran, Henry Meyer and Irina Reznik Apr 25, 2014 12:34 PM ET
OAO Gazprombank executives are preparing Russia’s third-largest lender for possible U.S. sanctions as the Obama administration gets ready to respond to escalating tensions in Ukraine, according to two people with knowledge of the deliberations.
Gazprombank is a potential target, said a U.S. official, who asked not to be identified because the information is confidential. Another Russian state-controlled financial institution, development lender Vnesheconombank, is taking precautionary measures against possible sanctions, according to one person familiar with talks at that bank. Spokesmen for Gazprombank and VEB, as it’s known, declined to comment.
Group of Seven nations are preparing new measures, German Chancellor Angela Merkel said today after the U.S. accused Russia of imposing its will on Ukraine at “the barrel of a gun and force of a mob.” President Barack Obama discussed deepening sanctions with Merkel and leaders from France, the U.K. and Italy in a conference call, a day after U.S. Secretary of State John Kerry said Russia is running out of time to ease tensions.
“Of the large institutions, VEB and Gazprombank do seem to be the most likely to be sanctioned,” Tim Ash, London-based economist for emerging markets at Standard Bank Group Ltd (STAN), said by phone. “VEB is a facilitating bank for the government and is systemically important while Gazprombank is a very large lender with links to Gazprom.”
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http://www.bloomberg.com/news/2014-04-24/gazprombank-said-to-prepare-for-u-s-sanctions.html