Economy

European Commission Proposes to Target Crypto Exchanges in 19th Sanctions Package Against Russia

Closing Financial Loopholes

The European Commission has unveiled a proposal for the 19th package of sanctions against Russia, introducing for the first time measures targeting cryptocurrency platforms to combat sanctions circumvention by the Kremlin.

European Commission President Ursula von der Leyen announced the new restrictions after discussions with EU partners and U.S. President Donald Trump.

“We will apply a transaction ban to more Russian banks and banks in third countries. We are strengthening the fight against sanctions circumvention. As this tactic becomes more complex, our sanctions will adapt… So for the first time, our restrictions will target crypto platforms and prohibit transactions in cryptocurrencies,” von der Leyen said.

Focus on Banks and Alternative Payment Systems

The proposal also extends restrictions to foreign banks connected to Russia’s alternative payment systems, as well as limits on transactions with entities operating in special economic zones.

The Commission asserts that Russian companies often use these zones to conceal transactions and evade existing sanctions.

Targeting War-Related Technologies

Von der Leyen stressed that the new package includes direct export restrictions on dual-use goods and technologies (that can be used for weapon production) that can be applied in warfare.

“We are also including 45 companies in Russia and third countries that provided direct or indirect support to the Russian military-industrial complex in the lists. In a war where innovation is the driver, it is critically important to cut off Russia’s access to key technologies. This primarily applies to drones,” she added.

LNG Ban Remains the Core Measure

The central element of the 19th sanctions package remains the planned ban on imports of Russian liquefied natural gas (LNG) into EU markets starting January 1, 2027.

Brussels says the move will strike directly at Russia’s fossil fuel revenues, which continue to finance its war against Ukraine.

IN Editorial Team

General reporting on current events by our editorial team members.

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