New US sanctions target Russian banks

In part of President Barack Obama's latest round of sanctions against Russia, the US Treasury Department highlighted its role in restricting resources to three state-owned banks and a defense technology firm.
Secretary of the Treasury Jacob Lew said in a statement: "Today's strong actions, taken in solidarity with our European allies, are a clear response to the Russian government's continued brazen actions." Within the financial sector, the sanctions will hit the Bank of Moscow, Russian Agricultural Bank, and VTB Bank. These measures will prohibit any person in the US from transacting, providing finance or deal in new debt of longer than 90 days maturity to any of these entities.
"As a practical matter, this step will severely limit these banks' access to medium- and long-term US dollar financing, and will impose additional significant costs on the Russian Government for its continued activities in Ukraine," said a separate statement from the Treasury on the sanctions.
In order to target Russian defense, the Treasury Department designated and blocked the assets of United Shipbuilding Corporation, "for operating in the arms or related material sector in Russia." The state defined the corporation as one that manufactures, "ordnance and accessories, and is engaged in shipbuilding, repair, and maintenance. United Shipbuilding Corporation designs and constructs ships for the Russian Navy and is the largest shipbuilding company in Russia." It is now added to the list of eight defense technology firms designated on July 16.
"These actions are designed to demonstrate the unity of the international community and the increasing isolation of Russia.
"We are prepared to take additional actions if Russia does not take steps to resolve this crisis," Lew added.