EU targets 14 crypto operators and 94 banks in Russia sanctions

The European Union has targeted 14 crypto service platforms and 94 banks and financial institutions under its 21st sanctions package against Russia.

According to the Council of the European Union, the measures cover crypto providers based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus. EU authorities linked the platforms to services used by Russia to bypass existing financial restrictions.

Adopted on July 23, the package contains 218 individual listings, including 48 people and 170 entities. The Council described it as the EU’s largest group of new listings in four years, covering financial services, energy, military suppliers and organizations accused of supporting sanctions evasion.

EU High Representative Kaja Kallas stated that the bloc was targeting more than 100 banks and crypto operators, over 40 vessels in Russia’s shadow fleet and several refineries in Russia and Belarus. Kallas also linked more than 50 of the new listings to Russia’s military-industrial sector and the production of long-range drones.

The financial restrictions include asset freezes and a ban on making funds available to the 94 listed banks and major financial institutions. Separately, the Council extended its transaction ban to 33 additional Russian credit and financial organizations, preventing EU companies and individuals from conducting business with them.

Four non-Russian banks also face transaction bans under the package. The Council identified one as a Kyrgyz bank connected to Russia’s System for Transfer of Financial Messages, or SPFS, while it accused three other foreign banks of helping entities avoid EU sanctions.

Crypto routes face direct transaction bans

For crypto companies, the package bars EU operators from conducting transactions with the 14 listed service platforms. The Council has not presented all of them as Russian businesses, instead focusing on providers in foreign jurisdictions that it says have enabled Russian-linked transfers.

The Council also added four designations connected to the A7 cross-border payments network, including entities tied to its activity in Africa. EU authorities have previously identified third-country payment channels as part of Russia’s efforts to maintain access to international financial services after sanctions restricted its banking sector.

Alongside the individual platform bans, the package gives the EU a mechanism to prohibit crypto-asset services linked to an entire third country. The Council said it may use the power when a country hosts crypto providers that help Russia evade EU restrictions.

Under the new tool, the bloc can ban transactions between EU operators and crypto providers used by Russia. The Council presented the measure as a deterrent for jurisdictions that allow sanctioned payment routes to continue operating through locally based platforms.

The provision expands on restrictions introduced in earlier packages. An official EU sanctions overview states that existing financial measures already cover Russia’s central bank, more than 100 Russian banks, specified crypto transactions and services involving crypto wallets, accounts or custody.

EU rules also prevent Russian nationals or residents from owning or controlling companies that provide crypto wallet, account or custody services. According to the Council, these controls are intended to limit the use of crypto businesses to circumvent restrictions applied to conventional financial institutions.

Energy revenue faces tighter restrictions

Beyond finance, the Council added 41 vessels to the EU’s shadow-fleet list, taking the total number covered by related restrictions to 673. The latest rules also apply to vessels that supply bunkering or other support services to ships accused of bypassing the Russian oil price cap.

Eight entities and one individual connected with shadow-fleet operations have also been listed. For the first time, the Council included a crewing agency accused of helping the fleet, alongside companies that EU authorities said operated for Russian oil producers.

Within the oil sector, the package designates 18 entities and one individual. The list covers three Russian refineries, a major refinery in Belarus and a company created to sell Belarusian petroleum products inside Russia, according to the Council.

A Georgian refinery in Kulevi will face a transaction ban after a six-month transition period because of its role in trading and processing Russian oil. The EU also placed five oil traders under transaction bans for allegedly frustrating restrictions on purchases of Russian crude and petroleum products.

Amid disruption caused by the closure of the Strait of Hormuz, the Council paused the automatic adjustment of the Russian oil price cap until July 15, 2027. EU authorities will conduct an interim review to determine whether the suspension remains necessary and proportionate.

Military-linked measures add 56 people and companies associated with Russia’s defense industry, including 37 listings tied to long-range drone production and supply chains. The Council also placed 51 entities under tighter export controls for dual-use goods and technology, including companies in China, India, Türkiye, Kazakhstan, Kyrgyzstan and the UAE.

Trade restrictions cover materials and equipment used in aircraft, drones, missiles and corrosion-resistant engine coatings. The package also limits imports worth more than €60 million annually, including certain ores, metals, glassware and vehicle parts that the Council identified as sources of Russian revenue.