EU plans crypto ban for Russia, FT reports
Photo: Ursula von der Leyen, President of the European Commission (Getty Images)
The European Commission has proposed a complete ban on any cryptocurrency transactions linked to Russia, aiming to cut off Moscow’s ways of bypassing sanctions, the Financial Times reports.
Crypto ban
Brussels has decided to abandon attempts to ban individual mirror Russian crypto companies, as this only leads to the creation of new structures.
The internal European Commission document states that the EU prohibits interacting with any crypto service provider or using any platform for transferring or exchanging crypto assets that is based in Russia.
The bloc wants to shut down the successors of Garantex, Russia’s largest crypto exchange, and restrict the use of the Russian payment platform A7 and its stablecoin A7A5.
The proposal also calls for adding 20 banks to the sanctions list and fully banning any transactions involving the Russian central bank’s digital ruble.
Secondary sanctions target Kyrgyzstan
Brussels also proposes banning exports of dual-use goods like electronics and machinery to Kyrgyzstan.
EU data show abnormal trade growth: imports of priority goods from the EU to Kyrgyzstan surged 800%, while Kyrgyz exports to Russia jumped 1,200%. EU special envoy David O'Sullivan plans to visit Kyrgyzstan later this month.
Next steps
Implementing these measures requires unanimous support from all 27 EU countries. According to FT sources, three countries have expressed doubts and are seeking more information. The European Commission initially aimed to finalize the package by February 24.
On February 6, European Commission President Ursula von der Leyen presented the 20th sanctions package against Russia.
On February 9, reports emerged that the new sanctions could also target Russian rapper Timati, the FIDE President, and others.
