EU expands sanctions against Russia with crypto platforms

The European Union has agreed to a new and extensive sanctions package against Russia. This is the 21st package, and for the first time crypto platforms are explicitly in the spotlight. Ambassadors of the EU member states have given the green light for the measures, which also affect 94 Russian financial institutions and the Moscow Stock Exchange.

Banks, stock exchange and crypto under fire

The sanctions package primarily targets the Russian banking sector. The 94 institutions, mostly banks, together with the Moscow exchange, will now be subject to full sanctions. This means asset freezes, travel bans and transaction bans. The EU considers Russia’s financial system to be vulnerable at this point and wants to increase the pressure further, reports Reuters.

New in this package are the expanded transaction bans on crypto platforms. Previously, restrictions were already in place on a few platforms, but the EU is now significantly broadening that list. In doing so, Brussels is closing a loophole that Russia may have used to circumvent Western sanctions via digital currencies. International organisations such as the FATF have also been urging stricter controls on the crypto sector to prevent this kind of evasion.

Shadow fleet and oil price cap

For the first time, the package also targets ships that are part of Russia’s so-called shadow fleet. This fleet consists of tankers that transport oil outside Western oversight. By sanctioning these vessels as well, the EU aims to further limit revenues from Russian oil trade.

Furthermore, the package freezes the oil price cap at $44.10 per barrel for a period of twelve months. This cap determines the maximum price at which Western companies may provide services for the transport of Russian oil. By fixing this amount, the EU wants to prevent Russia from generating more revenue through rising oil prices. The technical details of the package have now been finalised, and on Thursday the formal written procedure for final approval will be set in motion.