EU Moves to Cut Russia Off From Money Flows With New Crypto and Bank Sanctions

Instead of widening trade bans alone, Brussels is now targeting the mechanics of payment itself – banks, digital currencies, crypto platforms, and the shadow systems Russia has leaned on as sanctions tightened.

Turning finance into a pressure weapon

EU officials are framing the upcoming 20th sanctions package as a cash-flow operation rather than another round of symbolic penalties. The central idea is simple: if Russia cannot move money, it cannot sustain a prolonged war.

Foreign affairs official Kaja Kallas has argued that restricting access to global finance is more decisive than blocking individual exports. The new measures are designed to raise the cost of every transaction linked to the Russian state, whether it moves through traditional banks, digital instruments, or intermediaries abroad.

A fresh wave of Russian banks is expected to face full transaction bans, including institutions operating in third countries that still help channel funds to the Kremlin. These banks would be disconnected from the SWIFT system entirely, removing their ability to communicate with the global banking network.

The EU is also signaling that geographic distance will no longer provide protection. Financial institutions outside Russia that facilitate Kremlin-linked payments could face the same penalties as domestic lenders.

Digital ruble and crypto doors slammed shut

One of the most significant shifts in this package is its focus on modern financial tools. The EU plans to outlaw the use of Russia’s central bank digital currency within the bloc, effectively treating the digital ruble as a sanctioned instrument.

At the same time, European companies would be barred from interacting with Russian crypto-asset service providers. Officials believe Moscow has increasingly relied on crypto infrastructure to settle trade and move capital as conventional banking routes narrowed. Unlike earlier rules that capped wallet balances, the new approach is aimed at stopping transactions outright.

Choking off oil, shipping, and workarounds

Financial pressure is being paired with logistical disruption. More than 40 oil tankers tied to Russia’s shadow fleet are expected to be sanctioned, cutting them off from EU ports, insurance, and maritime services.

The package also targets support services for Russian LNG tankers and icebreakers, raising operational risks for energy exports that still generate hard currency. In parallel, Brussels is tightening enforcement of the oil price cap, with a longer-term goal of banning maritime services for any Russian oil sold above the threshold.

Export controls go smaller – and broader

Rather than focusing only on advanced technology, the EU is expanding restrictions to include basic industrial materials such as chemicals, rubber, laboratory glassware, and metalworking tools. These items may appear minor, but EU officials say they are essential to keeping military production lines running.

For the first time, the bloc is also deploying its Anti-Circumvention Tool against countries suspected of acting as transit hubs. If evidence shows sanctioned goods are being rerouted to Russia, exports to those countries could be restricted altogether.

Individuals, propaganda, and accountability

The sanctions list will also grow to include individuals accused of war crimes, the illegal transfer of Ukrainian children, and the seizure of cultural property. Those involved in state-backed propaganda efforts are set to face asset freezes and travel bans.

Taken together, the EU’s message is that the focus has shifted from limiting Russia’s options to actively collapsing the systems that allow the war to be financed.

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