Washington has imposed sanctions on Russia that restrict letter of credit (L/C) transactions with four of the country's largest financial and energy companies.

The new sanctions imposed on 17 July 2014 respond to Moscow's approach to the crisis in the Ukraine.

Prohibited transactions

The sanctions restrict US persons and others within the US from "transacting in, providing financing for, or otherwise dealing in new debtof longer than 90 days maturity" in respect of the proscribed companies.

According to the Office of Foreign Assets Control (OFAC), the term debt includes "bonds, loans, extensions of credit, loan guarantees, L/Cs, drafts, bankers' acceptances, discount notes or bills, or commercial paper."

Blocked individuals

Another new tranche of sanctions imposed by the Obama administration is seen in an expansion of OFAC's Specially Designated Nationals and Blocked Persons list.

It now includes additional Russian entities and individuals whose property is now blocked.

Proscribed banks

Financial transactions are now prohibited with Gazprombank and Vnesheconombank, the latter otherwise being known as the Bank for Development and Foreign Economic Affairs.

Dealing in new equity is also prohibited with these banks.

Energy companies

All except new equity transactions are also prohibited with energy companies, OAO Novatek and Rosneft Oil Company

The EU is expected to expand its sanctions criteria and designate additional Russian individuals and entities by the end of the month.

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