Avtovaz captive bank falls under U.S. sanctions

MOSCOW. Nov 21 (Interfax) - The United States Treasury Department's Office of Foreign Assets Control (OFAC), which enforces sanctions, has included Avtovaz's Auto Finance Bank in the Specially Designated Nationals and Blocked Persons (SDN) List.

OFAC said that Auto Finance Bank is one of more than 50 Russian banks that the United States has sanctioned.

Expanding the OFAC list should deter Russia from abusing the international financial system to pay for technology and equipment, the U.S. Treasury Department said. Foreign financial institutions that maintain correspondent relationships with these banks should be aware that continuing such relationships carries significant risk of sanctions, OFAC said.

Avtovaz , previously also included in the SDN list, acquired 100% of RN Bank shares from the Barn B.V. holding company last year, after which the bank was renamed Auto Finance Bank. The bank focuses its business profile on issuing car loans and factoring financing for car dealers. The bank ranked 57th in terms of assets in the Interfax-100 ranking prepared by the Interfax Center for Economic Analysis in the second quarter of 2024.