The new U.S. sanctions law threatens to cut off a vital channel for Russia’s funding of its massive defense buildup, according to four people familiar with the situation.
Officials in the government and state banks -- Sberbank PJSC and VTB Bank PJSC are the biggest players -- are looking for ways to get around the restrictions or minimize their impact on the funding, these people said, speaking on condition of anonymity to describe confidential official deliberations. Some financing has already been delayed, one of the people said. The military expansion is a top priority for President Vladimir Putin.
