EU Moves to Cut Crypto Ties With Russia in 20th Sanctions Push

The European Union has formally proposed its 20th sanctions package against Russia, marking a decisive escalation in its approach to digital assets by moving toward a near-total ban on cryptocurrency transactions.

According to reporting from the Financial Times and official statements issued by the European Commission on February 6, 2026, the new measures are designed to eliminate what EU officials describe as remaining “financial loopholes” that allow Russian entities to bypass existing restrictions using crypto infrastructure.

If adopted, the package would represent the EU’s most aggressive intervention in crypto markets since the start of the conflict.

A Shift From Limits to a Full Transaction Ban

Previous EU sanctions focused primarily on wallet balance caps and selective asset restrictions. The new proposal moves significantly further, calling for a comprehensive prohibition on crypto transactions between EU-based entities and Russian residents.

This would effectively block payments, transfers, custody services, and trading activity involving Russian users across the EU’s digital asset ecosystem. Officials frame the move as part of a broader effort to choke off alternative payment rails that remain outside traditional banking oversight.

For the first time, the sanctions explicitly target crypto-asset service providers, including exchanges and custodial platforms, that facilitate transactions for Russian actors.

Digital Ruble and Anti-Circumvention Measures

The package also introduces a total ban on dealings involving Russia’s central bank digital currency, the digital ruble. Any interaction with the CBDC within EU jurisdiction would become prohibited, closing a channel that policymakers see as a potential long-term sanctions workaround.

In parallel, the EU is activating its Anti-Circumvention Tool for the first time. This mechanism allows the bloc to restrict exports and services to third countries suspected of acting as intermediaries for sanctioned activity. Jurisdictions such as Kyrgyzstan have been cited in policy discussions as potential transit hubs for both physical goods and crypto-related services.

Enforcement Strategy and Political Hurdles

EU officials describe the 20th package as a “cash-flow operation”, shifting emphasis away from trade restrictions toward payment systems and financial infrastructure. Alongside the crypto measures, the proposal includes plans to expand SWIFT cutoffs to 20 additional regional Russian banks.

As of February 10, 2026, the proposal has been formally submitted to EU member states. Like all sanctions packages, it requires unanimous approval from all 27 countries before entering into force, leaving room for political negotiation in the coming weeks.

Built on Earlier Crypto Sanctions

The proposed measures build directly on the EU’s 19th sanctions package, adopted in October 2025, which first targeted ruble-backed stablecoins such as A7A5. At the time, officials characterized those assets as part of a developing “shadow ruble” system designed to replicate traditional finance outside regulated channels.

With the 20th package, the EU is signaling that partial restrictions are no longer sufficient, and that crypto infrastructure itself is now viewed as a strategic sanctions battleground.

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