The European Union has introduced a new round of sanctions targeting financial networks that support Moscow, adding Russian cryptocurrency exchange Garantex to its blacklist.
This marks the first time the EU has sanctioned a Russian-based crypto exchange, signalling a broader crackdown on entities allegedly aiding the country’s war efforts.
According to a February 24 press release, Garantex, already sanctioned by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) in 2022, is now part of the EU’s sixteenth sanctions package. The latest measures, announced by the Council of the EU, include penalties against 48 individuals and 35 entities accused of directly supporting Russia’s military operations.
The Council issued a statement highlighting Garantex’s connections to sanctioned Russian financial institutions, aiming to restrict Russia’s access to international financial systems, particularly in digital assets. The sanctions also target companies aiding Russia in circumventing trade restrictions, three firms transporting Russian crude oil, and a Chinese satellite imagery company linked to Russian military intelligence. Additionally, several media outlets promoting Kremlin-backed propaganda were sanctioned.
Since the onset of its restrictive measures against Russia, the EU has blacklisted more than 2,400 individuals and entities. Officials have indicated that additional sanctions could follow if deemed necessary.
Garantex first came under scrutiny in April 2022 when OFAC imposed sanctions on the platform, citing its role in facilitating illicit transactions linked to cyber criminals and darknet marketplaces. U.S. authorities alleged that the exchange processed funds for groups such as the Russian Ransomware-as-a-Service operation Conti and the now-defunct Hydra marketplace.
The latest sanctions on Garantex reflect concerns over Russia’s use of domestic cryptocurrency exchanges to evade international restrictions. A September 2024 report from Chainalysis indicated that platforms like Garantex and Exved could facilitate cross-border trade despite sanctions. Since 2018, Garantex has processed nearly $100 billion in transactions, offering significant liquidity across major blockchains.
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