US sanctions Vladimir Putin's daughters, Russian banks over Ukraine invasion

"This action will freeze any of Sberbank’s and Alfa Bank’s assets touching the U.S financial system and prohibit U.S. persons from doing business with them. Sberbank holds nearly one-third of the overall Russian banking sector’s assets and is systemically critical to the Russian economy," The White House said in a statement.

Alfa Bank is Russia’s largest privately-owned financial institution and Russia’s fourth largest financial institution overall.

The new sanctions targeted Maria Vorontsova and Katerina Tikhonova, two adult daughters of Putin's with his former wife Lyudmila Shkrebneva.
 

The sanctions were also imposed on Foreign Minister Lavrov’s wife and daughter, and members of Russia’s Security Council including former President and Prime Minister of Russia Dmitry Medvedev and Prime Minister Mikhail Mishustin.

"These individuals have enriched themselves at the expense of the Russian people.  Some of them are responsible for providing the support necessary to underpin Putin’s war on Ukraine. This action cuts them off from the U.S. financial system and freezes any assets they hold in the United States," The White House said in a statement.

Sanctions do not preclude payments on Russian sovereign debt at this time, provided Russia uses funds outside of U.S. jurisdiction, The White House said.

"However, Russia is a global financial pariah — and it will now need to choose between draining its available funds to make debt payments or default," the statement said.

President Joe Biden will sign a new Executive Order (E.O.) that includes a prohibition on new investment in Russia by U.S. persons wherever located, which will further isolate Russia from the global economy.

"This action builds on the decision made by more than 600 multinational businesses to exit from Russia. The exodus of the private sector includes manufacturers, energy companies, large retailers, financial institutions, as well as other service providers such as law and consulting firms," the statement said.

"Today’s E.O. will ensure the enduring weakening of the Russian Federation’s global competitiveness," it added.

"These sweeping financial sanctions follow our action earlier this week to cut off Russia’s frozen funds in the United States to make debt payments. Importantly, these measures are designed to reinforce each other to generate intensifying impact over time," the statement further said.