The European Union (EU) is escalating its efforts to crack down on sanctions evasion by targeting cryptocurrency platforms in its latest sanctions package against Russia. This 19th package, proposed by European Commission President Ursula von der Leyen on September 19, 2025, aims to tighten financial controls and weaken Russia's economic resilience in response to the ongoing war in Ukraine.
The new measures mark the first time the EU has directly targeted crypto platforms. A key component of the package is the inclusion of the Russian cryptocurrency exchange Garantex on the EU's sanctions list. Garantex, which was previously sanctioned by the U.S. in April 2022, is accused of being closely associated with EU-sanctioned Russian banks and facilitating the circumvention of financial controls. The EU asserts that Garantex allowed users to convert rubles into cryptocurrencies, thereby bypassing capital controls, and obscuring transaction identities.
Beyond targeting specific platforms, the EU's 19th sanctions package includes a prohibition on all cryptocurrency transactions for Russian residents. This measure aims to prevent Russian individuals and entities from using digital assets to evade financial restrictions. The EU will also restrict dealings with foreign banks connected to Russia's alternative payment systems. Furthermore, the package seeks to block transactions with entities operating in Russian special economic zones.
In addition to the measures targeting crypto, the EU's 19th sanctions package includes a range of other restrictions aimed at weakening Russia's economy. These include: Restrictions on 118 vessels linked to Russia's "shadow fleet", A ban on transactions with major energy players Rosneft and Gazpromneft, Penalties on Russian and foreign banks accused of helping Moscow bypass existing restrictions, Export bans on goods and technologies with battlefield applications, including drone-related systems, Efforts to block imports of Russian liquefied natural gas (LNG) into EU markets.
Ursula von der Leyen stated that the EU is committed to staying ahead of Russia's evasion tactics and will adapt its sanctions accordingly. She emphasized the importance of cutting off Russia from critical technologies, particularly those related to drone warfare. The EU aims to weaken Russia's economic resilience and set global regulatory precedents by targeting crypto infrastructure in geopolitical conflicts.
While blockchain analytics tools can assist in tracing crypto transactions, challenges remain in monitoring decentralized finance and privacy coins. Experts suggest that Russia may adapt by accelerating initiatives like its digital ruble or leveraging state-backed systems to bypass conventional financial networks. The EU's focus on crypto platforms signals a broader recognition of digital assets as a tool for both financial resilience and a target for regulatory scrutiny. The effectiveness of these measures will depend on international cooperation and the ability to address the pseudonymous nature of crypto transactions.
