RUSSIA’S central bank promised today that it would support any financial institutions hit by United States or European Union sanctions.

In an online statement, the bank promised to “take adequate measures” to support targeted institutions. 

Shares in Russia’s state-owned VTB bank — which had been specifically named in sanctions proposals — dropped 1.2 per cent yesterday, but major banks left unscathed by sanctions were trading higher.

US officials bragged on Tuesday that roughly 30 per cent of Russia’s banking sector assets were now constrained by sanctions.

The West has also halted future forays into Russian markets, with the US announcing plans to block future technology sales to the oil industry and Europe approving an arms embargo. 

Europe also backed sanctions against state-owned banks and the energy sector, though specific EU targets will not be made public until later this week.

Officials insist new sanctions will damage the Russian economy. 

The International Monetary Fund has slashed Russia’s growth forecast for this year to nearly zero, down from 1.3 per cent last year and the US claims more than £59 billion in capital will flow out of the country.

But it remained uncertain whether tougher penalties would have any impact on Russian actions in Ukraine — nor was it clear what further actions the US and Europe were willing to take if the situation remained unchanged. 

Europe has a far closer economic relationship with Russia than the US and until this week EU leaders had been reluctant to impose harsh penalties out of fear of harming their own economies.