EU Bans Transactions with Crypto Firms Supporting Russian Military-Industrial Complex

The European Union, as part of its 14th package of sanctions against Russia, has prohibited transactions with banks and cryptocurrency services from third countries that facilitate dealings with the Russian defense industry.

In a press release, the EU Council explains that the restrictions apply to any transactions with Russia concerning dual-use goods and technologies, sensitive and military goods, firearms, and ammunition.

Additionally, European companies and their subsidiaries in third countries are banned from working with the SPFS (Russia’s SWIFT equivalent) and organizations using it.

Furthermore, the new package includes:

• a ban on the re-export of Russian liquefied natural gas through European ports;
• a ban on importing helium from Russia and exporting goods to Russia that bolster its industrial potential, including rare earth metals, plastics, earth-moving machinery, and electrical equipment;
• a ban on entry for trucks operated by entities more than 25% owned by Russians;
• a ban on private flights for Russian individuals, companies, and agencies;
• a ban on European political parties and media receiving funding from Russia;
• restricted access within the EU to three Russian media outlets — “RIA Novosti,” “Izvestia,” and “Rossiyskaya Gazeta”;
• personal sanctions against 116 individuals and entities.

The restrictions take effect on June 25. 

In April 2022, the EU banned crypto companies from providing digital asset-related services to Russian residents with deposits exceeding €10,000. 

Later, the European Parliament completely prohibited the servicing of their cryptocurrency wallets within the eurozone and the holding of any amount of such assets.

The EU, alongside the US, also imposed sanctions against several Russian banks, effectively banning transfers with cards issued by them.

In December 2023, the European Union prohibited Russians from owning, controlling, or holding any positions in the management bodies of companies providing cryptocurrency services.

In March 2024, the EU approved criminal penalties for circumventing sanctions using cryptocurrencies.