EU Unveils 21st Russia Sanctions Package Targeting $120B Crypto Network

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The European Union is preparing to take an unprecedented step by considering a ban on crypto service providers based outside the bloc. The move would target 14 crypto-related companies, though their names have not yet been disclosed.

As part of its latest sanctions package against Russia, the EU has expanded restrictions to include four entities linked to the cross-border A7 network, including its growing connections with African markets.

The bloc is also extending transaction restrictions to 14 unnamed crypto service platforms operating in countries including Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus.

Blockchain analytics firm Chainalysis has previously reported that the A7 network, which supports the A7A5 stablecoin, has processed nearly $120 billion in transactions. The network has been described as a tool designed to help Russia bypass international sanctions.

“We are targeting more than 100 banks and crypto operators, over 40 vessels linked to Russia’s shadow fleet, and several oil refineries in Russia and Belarus,” said Kaja Kallas, High Representative for Foreign Affairs and Security Policy and chair of the Foreign Affairs Council.

The EU’s previous Russia sanctions package was announced in April and described as its largest set of measures against Moscow in two years. At the time, officials warned that Russia was becoming increasingly dependent on cryptocurrencies for cross-border transactions.

The latest sanctions arrive shortly after Russia’s State Duma approved the country’s first broad regulatory framework for digital assets, with most provisions expected to take effect on September 1. The legislation establishes rules for crypto exchanges, custodians, service providers, traders, and investors.

The 21st sanctions package introduces a potential new mechanism allowing the EU to completely restrict crypto asset service providers in third countries. Under the proposed measure, European operators could be prohibited from conducting transactions with crypto platforms allegedly used by Russia.

Beyond crypto restrictions, the EU is also imposing asset freezes and funding bans on 94 banks and major financial institutions. Additionally, transaction restrictions will be expanded to cover 33 more Russian credit and financial organizations.