WASHINGTON: Russia's entire banking sector is at risk if the Kremlin orders further invasion of Ukraine, a US official said Tuesday, with two of the country's banks so far targeted by US sanctions.
"No Russian financial institution is safe if this invasion proceeds," the official told reporters after the announcement of sanctions against the Vnesheconombank (VEB) state development bank and Promsvyazbank (PSB), which is tied to the defense sector.
The official, who asked not to be identified, said that further attacks on Ukraine could see sanctions against big state banks Sberbank and VTB.
Export controls stopping the flow of high-tech components to Russia are also a "key component of our potential sanctions," the official added, calling the measures "really potent because we're talking about critical technology that Russia needs to diversify its economy".