rewrite this title EU sanctions Russian crypto exchange Garantex over Ukraine conflict ties

The European Union has taken action against Garantex, a Russia-based crypto exchange, as part of its 16th sanctions package targeting entities linked to the Ukraine conflict.

In a statement released on Feb. 24, the EU identified Garantex as a key player in facilitating Russia’s efforts to bypass financial restrictions.

The council cited the exchange’s close association with Russian banks already under EU sanctions as a primary reason for the measure. This move marks the first time the EU has directly sanctioned a Russian crypto exchange.

The EU’s latest sanctions seek to limit Russia’s access to financial resources and disrupt its ability to fund military operations. By targeting Garantex, the EU aims to close financial loopholes that enable Russia to circumvent economic restrictions through crypto.

Notably, CryptoSlate previously reported that Russians had turned to digital assets like Bitcoin and Tether’s USDT to neutralize the impact of Western sanctions on its economy.

Meanwhile, the package includes restrictions on 48 individuals and 35 entities, increasing the total number of sanctioned persons and organizations to over 2,400.

The EU stated that these sanctioned entities actively support Russia’s war efforts. As a result, their assets are now frozen, and EU citizens and businesses are prohibited from conducting transactions with them. Additionally, individuals on the list face travel bans, restricting their movement within EU member states.

Beyond Garantex, the sanctions apply to Russian oil transport companies, a Chinese satellite imaging firm, media propagandists, business figures, and political entities. These measures aim to tighten economic and financial pressure on Russia’s war-linked networks.

This action against Garantex follows prior restrictions imposed by the United States and the United Kingdom. In 2024, investigators in both countries were examining the exchange’s role in processing approximately $20 billion USDT.

Before that, the US Treasury accused Garantex of failing to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, which allowed illicit transactions to occur on its platform.

As a result. the exchange’s wallets are now listed on the US Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals (SDN) List.

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