You're reading: Russian VEB bank considers sanctions illegal

MOSCOW, Russia - VEB, the subsidiaries of which were added to the United States sectoral sanctions list, regrets the actions of the U.S. regulator, but does not expect the sanctions to affect the group's activities.

Due to the OFAC (Office of Foreign Assets Control, part of the United States Department of Treasury) decision, besides VEB, these companies also came under United States sanctions: The Russian Direct Investment Fund (RDIF), EXIAR, Globex Bank, VEB-Leasing, VEB-Capital, Federal Center of Project Financing, Sviaz Bank, Prominvestbank, Resad, Rose Group, and VEB-Engineering.

As a fact, all of these companies could not raise long-term financing or place shares in the United States (this is precisely what is banned under the sectoral sanctions), as subsidiaries of VEB, however formally they have not been added to the list by the Treasury Department.

“Vnesheconombank confirms that the new U.S. sanctions will not have a significant impact on the activities of the VEB group. The new list of sanctions only specifies the content of the previous edition from the Department of Treasury, and VEB groups were singled out by name,” a VEB representative told reporters on Friday.

“Of course we cannot accept these actions without regret. All of the VEB group obligations to investors, depositors and creditors, are being carried out in the full amount and in the designated timeline. We have enough resources for us to carry out Vnesheconombank’s work,” he said.

“We say again, that these sanctions are illegal, and go against the norms of international laws,” he said.