The European Union has rolled out its 19th sanctions package against Russia, marking the first time crypto platforms have been included since the start of the war in Ukraine.
Adopted on Thursday, the new measures ban Russia-based crypto payment providers and the distribution of related payment software within the EU. In addition, the sanctions target Russian energy companies, banks, and entities in China, Kyrgyzstan, Tajikistan, Hong Kong, and the United Arab Emirates accused of assisting Moscow in evading previous restrictions.
“We have just adopted our 19th package of sanctions,” said Kaja Kallas, the EU’s high representative for foreign affairs and security policy. “It targets Russian energy, banks, crypto exchanges, and entities in China, among others. The EU is also regulating the movements of Russian diplomats to counter attempts at destabilisation.”
This latest package underscores the EU’s continued efforts to pressure Russia economically and politically, extending its reach into the cryptocurrency sector for the first time.
The European Union has targeted Russia’s A7A5 ruble-backed stablecoin in its latest sanctions package, citing the country’s increasing use of digital assets to circumvent financial restrictions.
“Recent activity has evidenced Russia’s increasing use of crypto in circumventing sanctions,” the European Council said on Thursday.
The sanctions include a bloc-wide ban on A7A5, which EU authorities described as “a prominent tool for financing activities supporting the war of aggression.” The measures also prohibit the Kyrgyz issuer of the stablecoin and the operator of an unidentified digital asset platform where “significant volumes” of A7A5 were traded.
In addition, at least eight banks and oil traders from Tajikistan, Kyrgyzstan, Hong Kong, and the United Arab Emirates face a transaction ban for helping Russia evade EU sanctions.
The EU had first proposed blocking Russian crypto platforms on September 19 and subsequently moved to ban the A7A5 stablecoin. Reports suggest that Russian oil companies have increasingly used cryptocurrencies such as Bitcoin and Tether’s USDt to bypass financial restrictions.
These measures reflect the EU’s growing focus on digital assets as a channel for sanction evasion, highlighting the role of crypto in geopolitical and economic conflicts.
