Washington has sanctioned the country’s primary bank for energy-related transactions

The latest round of US sanctions against Russian financial institutions, which specifically target Gazprombank, is an attempt to block Russia’s gas supplies to the EU, Kremlin spokesman Dmitry Peskov stated on Friday. The lender is Russia’s primary bank for energy-related transactions.

Peskov warned that Moscow would respond to restrictions with countermeasures, though he did not specify what they would entail.

The Kremlin spokesman’s remarks follow an announcement by the US Office of Foreign Assets Control (OFAC) on Thursday, which said Gazprombank and six of its international subsidiaries had been added to its sanctions blacklist. Gazprombank had already been sanctioned by the UK and Canada shortly after the escalation of the Ukraine conflict in 2022. However, the US had previously avoided placing restrictions on the lender as it was used by EU states to pay for Russian gas.

When asked whether the Kremlin viewed sanctions on Gazprombank as an attempt to jeopardize supplies of Russian gas to Europe, and whether Moscow planned any response, Peskov replied: “The answer is ‘Yes’ to both questions.”

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He noted that Russian authorities were already working on ways to alleviate the problems that the new restrictions could cause Russia and its foreign gas buyers.

“Of course, we’ll find options. It is impossible to introduce completely blocking measures against a country like Russia. It may take some time, but a solution will still be found,” Peskov said.

The new measures mean Gazprombank can no longer carry out transactions that involve the dollar-based financial system. Gazprombank earlier said that sanctions would not affect its operations within Russia, but warned that its UnionPay cards may stop working outside the country.

Apart from Gazprombank, the new US restrictions also targeted more than 50 small-to-medium Russian lenders, some 40 securities registrars, and 15 financial officials.

After the escalation of the Ukraine conflict in 2022, the EU declared the elimination of its reliance on Russian energy to be its top priority. Many member states, including Poland, Bulgaria, Finland, the Netherlands, and Denmark, voluntarily halted their imports. However, several EU nations, including Austria, Hungary, Slovakia, the Czech Republic, and Italy continue to rely on Russian gas to meet their energy needs, and have not stopped buying the commodity despite pressure from peers within the bloc.

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Moscow has slammed Western sanctions as illegal, and noted that they keep backfiring on the countries that impose them. Russia has also been gradually moving away from the dollar in trade, switching to transactions using national currencies with most of its international partners.