In a major escalation of economic pressure, the European Union is preparing to ban all cryptocurrency transactions connected to Russia as part of its 20th sanctions package since the 2022 invasion of Ukraine. According to an internal European Commission document cited by the Financial Times on February 9, this sweeping prohibition represents a significant shift from previous targeted restrictions on individual platforms to a blanket ban on all Russian-registered crypto services.
The EU’s 20th sanctions package marks a dramatic pivot from targeting specific crypto platforms to imposing an all-encompassing ban on Russian services.
The move aims to close loopholes that Moscow has exploited to purchase war-related goods and evade traditional banking sanctions. EU officials have grown frustrated watching banned platforms quickly replaced by copycat services that continue operating under different names. The new approach prohibits any engagement with cryptocurrency service providers established in Russia, making it much harder for new networks to simply pop up like digital whack-a-mole. Many experts say users should also consider moving holdings to cold wallets for long-term security.
A primary target is the network linked to Garantex, Russia’s largest crypto exchange when the US sanctioned it in 2022. The A7 payment platform and its ruble-backed stablecoin A7A5 have emerged as key sanction-dodging tools. Despite existing restrictions, A7A5 has processed over $100 billion in transactions according to Elliptic data, with $9 billion moving through just one exchange.
The platform provides cash access for Russian tourists in Dubai and Istanbul, while offering businesses payment options including transactions with China. Reports indicate connections between the ecosystem and Moldovan businessman Ilan Shor.
The sanctions package also targets Russia’s planned digital ruble, which Moscow intends to roll out in occupied Luhansk starting September 2026. Ironically, many settlements in that region lack reliable internet access, suggesting the initiative serves propaganda purposes more than practical economic needs.
However, implementation faces challenges requiring unanimous approval from all 27 EU member states. Three countries have already raised concerns about the blanket approach. The package would additionally blacklist around 20 more Russian banks and represents the first time the EU has sanctioned third-country port facilities, previously proposing measures against ports in Georgia and Indonesia used for Russian oil shipments. Europe is also considering a possible ban on certain dual-use goods to Kyrgyzstan, where companies have sold prohibited machine tools and electronics used in weapons and drones to sanctioned Russian entities. The all-encompassing crypto ban reflects the EU’s determination to make certain sanctions achieve their intended effect.
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