List of sanctioned banksforeign tradeSanction background and impact

Impact on the Chinese financial market

Address: 20A, CITIC Tower, 19 Jianguomenwai Street, Beijing

1.VTB BANK PJSC SHANGHAI BRANCH
Address: 1266 Nanjing West Road, Shanghai (Plaza 66, now relocated to Lujiazui)

2.STATE CORPORATION BANK FOR DEVELOPMENT AND FOREIGN ECONOMIC AFFAIRS VNESHECONOMBANK
Address: 20A, CITIC Tower, 19 Jianguomenwai Avenue, Beijing

3.PUBLIC JOINT STOCK COMPANY SBERBANK OF RUSSIA
Address: C305/306A, Lufthansa Center, No. 50, Liangmaqiao Road, Chaoyang District, Beijing

4.PROMSVYAZBANK PUBLIC JOINT STOCK COMPANY
Address: Room 1308, Science and Technology Building, No. 22, Jianguomenwai Street, Beijing

5.VTB CAPITAL HOLDINGS CLOSED JOINT STOCK COMPANY
Address: Room 2301, 23rd Floor, Cheung Kong Center, No. 2, Queens Road Central, Hong Kong

In addition, a representative office was also sanctioned: the Beijing Representative Office of VTB Bank (Public Joint Stock Company), with the address at Room BC, 18th Floor, CITIC Tower, No. 19, Jianguomenwai Street, Chaoyang District, Beijing.

According to the sanctions list released by the US Department of the Treasury on June 12, 2024, the following five Russian financial institutions in China were included in the Specially Designated Nationals (SDN) list:

This sanction is part of the USs package of sanctions against Russia, aiming to further restrict Russias activities in the international financial market. Although these Russian financial institutions had been sanctioned before, the names and addresses of these overseas branches were not clearly mentioned in the SDN list in May 2024. This time, by listing these branches separately, the US Treasury Department has further clarified the scope of the sanctions and explicitly stated the risks of major Russia-related transactions.

The direct consequence of the sanctions is that the assets of these financial institutions in the US will be frozen, and all US persons and entities in the US will be prohibited from conducting any transactions with these sanctioned institutions. For the Shanghai Branch of VTB Bank in Shanghai and other branches in China, this means that their international transactions and businesses will be severely restricted, and they may face customer loss and a trust crisis in the financial market.

Address: 1266 Nanjing West Road, Shanghai (Plaza 66, now relocated to Lujiazui)

For the Chinese financial market, this sanction action may have various impacts:

1. Trust Crisis of Financial Institutions: The businesses of the sanctioned financial institutions in China may be affected. Customers and partners may re - evaluate their business relationships with these banks due to compliance and risk considerations.
2. Adjustment of International Business: Other Chinese financial institutions may strengthen compliance reviews and avoid major transactions with the sanctioned financial institutions to prevent themselves from being affected by the sanctions. This will pose certain challenges to the financial cooperation between China and Russia.
3. Market Volatility: Due to the uncertainties caused by the sanctions, it may bring fluctuations to the relevant financial markets, and investors sentiment may also be affected.
4. Policy Adjustment: The Chinese government and financial regulatory authorities may take corresponding measures to ensure the stability of the financial market and may explore countermeasures with other sanctioned countries.