U.S. includes Rosbank on SDN List, gives until March 15 to wind down transactions

MOSCOW. Dec 15 (Interfax) - The United States has included Rosbank on its Specially Designated Nationals And Blocked Persons List (SDN List), the Office of Foreign Assets Control (OFAC), the division of the U.S. Treasury Department tasked with sanctions enforcement, said on Thursday.

The Treasury Department has in conjunction with this issued a license to wind down transactions involving Rosbank with a deadline of March 15, 2023, as is the norm in such cases.

Rosbank was also added to the authorization allowing certain blocked financial institutions to process transactions related to energy, in effect until May 16, 2023.

Rosbank was part of Societe Generale until the spring of 2022, when the French group decided to leave the Russian market over developments in Ukraine. Interros, which previously owned Rosbank, bought the lender in April. Potanin was included in the UK's sanctions list as the controlling owner of Rosbank.

In October, Interros transferred 47.5% of Rosbank to Potanin's charitable foundation, reducing its stake to 45%. Another 7.5% of shares were transferred to Rusfinance, which is owned by Rosbank, to be used for the incentive program for the bank's employees.

"The sanctions imposed against Rosbank by the U.S. will not have a significant impact on our work. We will maintain all best practices and standards in the interests of our clients. The bank continues to operate as usual and carry out all transactions in rubles, both remotely and at its extensive network of offices. All terms of service and rates on products are being maintained," Rosbank's press service told Interfax.

Rosbank has one of the highest capital adequacy ratios among Russian banks and is capable of ensuring smooth and high quality services for its customers, the lender added.

OFAC also added a number of subsidiaries of VTB Bank to the SDN List that earlier fell under sanctions for all intents and purposes according to the 50+ rule, but were not directly named on the list, including VTB Development, VTB Leasing, and others. This will strengthen compliance with sanctions already in place, OFAC said.

"The sanctions imposed by the U.S. against companies affiliated with VTB are further evidence of its desire to put pressure on business, partners and counterparties for its own benefit. This is a politicized decision that, however, will not particularly affect our work. VTB itself has been living under sanctions since February 2022. We know how to adapt," the state bank said.