Russia will create a new bank to finance defence needs and major state contracts in the wake of Western sanctions, the Russian Finance Ministry has said.

The new bank should be "optimally suited" for the role through its size and an extensive network of branches, the ministry said in a statement on Thursday, Xinhua news agency reported.

Corporate procedures necessary for the transfer of the new bank into the ownership of Russia will be completed in the near future, it added, without providing more details.

The US and its allies have sanctioned a number of Russian officials and companies over Crimea and the Ukrainian crisis, complicating the operation of various companies involved in Russia's military and industrial sectors.

Washington is expected to announce a new set of sanctions at the end of January in retaliation for Moscow's alleged meddling in the 2016 US presidential election, which may further hinder the work of such companies and banks.

Earlier this month, Russian President Vladimir Putin signed a law restricting information on certain government transactions and legal entities, which made the list of banks involved in financing the defence sector a secret.

The Russian central bank has consequently ceased to publish the list of such banks.