The US and European Union have imposed further sanctions against Russia by targeting President Vladimir Putin's inner circle in response to the escalating crisis in Ukraine.

The US and European Union have imposed further sanctions against Russia by targetting President Vladimir Putin's inner circle in response to the escalating crisis in Ukraine.

The US government announced in a statement yesterday that it was imposing new sanctions on seven prominent Russian government officials and 17 companies, saying Russia had failed to live up to its commitments to calm the situation in Ukraine.

Among the new targets that will be subject to travel bans and asset freezes are two long-time Putin advisors: Igor Sechin, president of the state-owned oil company Rosneft, and Sergei Chemezov, the director general of Rostec, the Russian state corporation which oversees high-technology industries.

The issue of a sanctions crackdown on such individuals has potential implications for the wealth management industry that has secured business from Russians and other wealthy individuals from the former Soviet Union and Eastern Europe in recent years. To see a recent article exploring some of the potential risks that banks and other institutions face, click here. 

Included in the 17 companies targetted in the sanctions are gas pipeline construction company Stroygazmontazh and Russia-based rail freight operator Transoil.

The list also names banks Investcapitalbank and SMP Bank, as well as three organisations owned or controlled by Bank Rossiya. No large state-owned companies or banks were included on the list.

The US also said it was restricting licenses for hi-tech items that could be used by the Russian military.

Europe

The EU today released the names of 15 new targets, bringing the total number of individuals facing asset freezes and travel bans to 48.

The list includes the chief of staff of Russia's Armed Forces, Valery Gerasimov, and Dmitry Kozak, the Russian deputy prime minister.

Other prominent Kremlin figures included in the new sanctions are the deputy chairman of the Russian lower house of parliament, Ludmila Shetsova, and Igor Sergun, head of the GRU, the Russian military intelligence agency. Several leaders of the pro-Russia militia forces that have been occupying buildings in eastern Ukraine were also named.

The move by the US and EU comes amid rising tension in Ukraine as a result of continued action by pro-Russian separatists who have taken over large parts of eastern Ukraine over the past three weeks. Western nations have accused Moscow of supporting the separatists, allegations which Russia has denied.

The new round of sanctions follows those imposed by the US and EU last month when Russia annexed Crimea. The measures targetted a number of individuals with close ties to Putin, including Sergei Ivanov, the president’s chief of staff and Russian billionaire Gennady Timchenko. Sanctions were also imposed on Bank Rossiya, the personal bank for senior officials of the Russian Federation.