The European Commission wants to ban crypto transactions with Russia

The ban is seen as an alternative to targeted sanctions

The European Commission intends to ban all cryptocurrency transactions with Russia to stop Moscow from using assets outside the traditional banking system to circumvent sanctions. This is reported by the British newspaper Financial Times, which has read the internal document of the EC.

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Why Brussels is changing its approach

According to the document, the European Union plans to introduce a large-scale ban on all cryptocurrency platforms created in Russia. This measure is seen as an alternative to the targeted inclusion of individual companies in sanctions lists. The European Commission considers this approach ineffective, since after blocking some structures, new ones quickly appear.

“Any further listings of individual cryptoasset providers will likely result in the creation of new structures to circumvent these restrictions,” the document says.

European authorities say Russian crypto platforms are being used to facilitate trade in goods used in the war against Ukraine.

What exactly are they proposing to ban?

The proposed measures include a complete ban on cooperation with Russian service providers in the field of crypto assets, as well as on the use of any platforms created in Russia for the transfer and exchange of cryptocurrency.

The restrictions are aimed, among other things, at platforms associated with the already sanctioned Garantex exchange, including the A7 payment service and the A7A5 stablecoin pegged to the ruble. According to data analytics company Elliptic, A7A5 transaction volume has exceeded $100 billion.

The package also includes a proposal to sanction 20 banks, ban digital ruble transactions and completely ban insurance, technical and other services for ships carrying Russian oil. This measure should effectively replace the current G7 price ceiling system. Additionally, restrictions are proposed on the import of Russian steel and scrap metal.

Obstacles and deadlines

A separate block of the document is dedicated to Kyrgyzstan. The European Commission is proposing to ban the export of a number of dual-use goods there, amid accusations that the country is helping to circumvent sanctions. The document states that imports from the EU to Kyrgyzstan have increased by almost 800% since the beginning of the war, and exports from the country to Russia by 1200%.

The acceptance of the package requires the consent of all 27 EU countries. According to the FT, three states have already expressed doubts about the possibility of such measures. Initially, the European Commission planned to agree on the document by February 24, the fourth anniversary of the start of Russia’s war against Ukraine.

In October 2025, the EU introduced the 19th package of sanctions, which for the first time affected crypto platforms . Then the head of the European Commission, Ursula von der Leyen, said that Brussels is targeting “financial loopholes that Russia uses to circumvent sanctions.”

Earlier, “Verstka” reported that the EU was preparing a complete ban on maritime services for Russian oil supplies as part of the 20th package of sanctions . The restrictions, in particular, will affect 43 tankers of the “shadow fleet”.

Photo: ZUMA Press Wire via Reuters Connect

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