EU prepares 21st sanctions package against Russia, targeting banks and crypto

The European Union is preparing to impose its 21st sanctions package on Russia, focusing on intensifying economic pressure through measures targeting the banking sector, cryptocurrency networks, and energy and industrial supply chains. European Union foreign policy chief Kaja Kallas announced the proposal, which aims to freeze assets and impose further trading restrictions on approximately 170 individuals and entities, including nearly 90 banks.

If adopted, the new package would bring the total number of sanctioned Russian banks to over 100, representing more than half of the country's creditors connected to the international financial system. This marks the most extensive wave of banking sanctions included in a single package to date. "We intend to hit the Russian financial sector hard, by imposing asset freezes on almost 90 banks and further trading bans on more than 30 banks in Russia and in third countries," Kallas stated.

Despite previous sanctions, including the disconnection of major Russian financial institutions from the SWIFT system in 2022, Russian firms have reportedly developed alternative financial networks using smaller banks to circumvent existing restrictions. The EU's new proposal also targets 11 cryptocurrency platforms facilitating sanctions evasion and may impose trading bans on around 35 financial institutions, including some outside Russia.

Furthermore, European Commission President Ursula von der Leyen indicated that the EU is developing mechanisms to restrict crypto services in third countries that aid Russia in evading sanctions. "We will introduce the possibility of a total ban in third countries for crypto-asset services. This will act as a strong deterrent for countries hosting platforms that help Russia to evade our sanctions," she said. The proposal requires unanimous approval from EU member states' ambassadors.

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Intenționăm să dăm o lovitură grea sectorului financiar rusesc, impunând înghețarea activelor la aproape 90 de bănci și interdicții suplimentare de tranzacționare la peste 30 de bănci din Rusia și din alte țări terțe.