The European Union is set to impose a sweeping ban on all cryptocurrency-related activity connected to Russia, aiming to cut off one of Moscow’s remaining channels for sanctions evasion, according to a Financial Times report on February 9 citing an internal European Commission document. The plan would shift from targeting individual crypto platforms to a blanket ban on any transactions involving Russian-registered crypto services or exchanges. The measures are aimed in particular at networks linked to the Russian crypto exchange Garantex, which has faced U.S. sanctions since 2022.
Another focus is the A7 payment platform and its ruble-backed stablecoin, A7A5, which the Financial Times described as a prominent tool enabling Russia to operate outside traditional banking channels. The ecosystem is reportedly linked to Moldovan businessman Ilan Shor and Russia’s Promsvyazbank, while its Kyrgyzstan-based legal base could set a precedent for penalizing third countries accused of sanctions evasion. The draft package would also ban operations involving Russia’s planned digital ruble and expand the EU blacklist to include roughly 20 additional Russian banks.
If enacted, the ban would mark a shift from selective enforcement to broad-based restrictions, underscoring the EU’s aim to tighten controls on crypto-enabled sanctions evasion. Crypto firms would need to implement heightened due diligence to ensure compliance across all Russian-linked wallets and exchanges. The move could reshape how crypto businesses monitor cross-border flows and cooperate with EU regulators.
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