The European Commission has proposed a ban or severe restriction on cryptocurrency transactions involving Russia as part of a wider sanctions package designed to tighten financial controls and reduce routes used to circumvent existing measures.
According to reporting on the draft package, the Commission’s approach would shift from targeting specific Russian-linked crypto firms to prohibiting dealings with crypto-asset service providers connected to Russia more broadly. The aim is to close channels that allow sanctioned actors to move value through digital assets, including via intermediaries and jurisdictions outside the European Union.
The proposal sits within what would be the EU’s 20th sanctions package since Russia’s full-scale invasion of Ukraine. The Commission’s plan also includes measures focused on Russian oil exports, shipping services, trade restrictions, and additional listings of banks, companies and individuals.
Crypto measures and the “digital rouble”
The draft package includes provisions aimed at emerging Russian payment instruments. Reporting indicates the Commission would introduce a ban on transactions involving Russia’s central bank digital currency, often referred to as the digital rouble. It would also target specific payment and stablecoin infrastructure linked to Russia, including the payment platform A7 and its stablecoin A7A5.
Officials and investigators across several jurisdictions have said crypto assets can be used to route payments when conventional banking channels are constrained, including through stablecoins, over-the-counter brokers and layered corporate structures. One of the challenges cited by policymakers is that naming individual firms can prove ineffective if services are rapidly replaced or rebranded, which has encouraged a broader, transaction-based approach in the latest proposal.
The Commission’s draft would still require unanimous approval by member states to be adopted. Past sanctions rounds have often been negotiated through successive revisions, with some capitals seeking narrower scope, longer lead times, or clearer enforcement parameters.
Links to third countries and “anti-circumvention” tools
The package is also framed around sanctions evasion via third countries. Reporting indicates the Commission proposes a new “anti-circumvention” tool that would restrict exports of certain goods to states suspected of onward shipment to Russia. Kyrgyzstan is identified as a likely early test case, with proposed limits on exporting certain machinery and dual-use items.
In parallel, the draft includes sanctions aimed at non-EU financial institutions and crypto-related entities accused of facilitating Russian-linked transactions. Reuters has reported that banks in Kyrgyzstan, Laos and Tajikistan are among those proposed for listing in connection with providing crypto-asset services to Russia.
The focus on Kyrgyzstan reflects a wider Western concern about re-export hubs that have expanded trade with Russia since 2022. Earlier measures by the EU and partners have sought to constrain flows of sensitive components and technology through intermediary markets, often by adding restrictions on specific goods and by listing traders, logistics firms, and financial institutions associated with rerouting.
Wider package: oil shipping, ports, banks, and commodities
While crypto provisions have drawn attention, the sanctions proposal is presented as a comprehensive package. Reuters has reported that the Commission wants to impose a sweeping ban on maritime services for Russian seaborne crude exports, which would affect service providers involved in shipping and insurance. The plan is intended to reduce Russia’s ability to sell oil using Western-linked services, and would be coordinated with international partners where possible.
The Commission has also proposed extending sanctions to ports in third countries alleged to facilitate Russian oil trade. Reuters reported the ports of Kulevi in Georgia and Karimun in Indonesia are included, marking a notable shift towards measures that would restrict EU operators from doing business with specific overseas port facilities.
In addition, the proposed package would add further vessels to the list of sanctioned ships associated with Russia’s “shadow fleet”, and widen restrictions on imports of certain Russian metals and industrial commodities. Reporting points to new listings of regional banks, as well as additional entities and individuals facing asset freezes and travel bans.
A tightening arc in EU sanctions policy
The crypto dimension builds on steps taken in earlier rounds. Reuters reported that in February 2025 the EU targeted a cryptocurrency exchange for the first time under its sanctions framework. In October 2025, the EU’s 19th package included measures against third-country banks and crypto providers, reflecting growing attention to non-traditional payment channels and intermediaries.
If adopted, the proposed transaction restrictions would signal an attempt to move from case-by-case listings towards rules that capture a broader set of Russia-linked crypto activity, including digital-currency instruments and service providers used to route payments outside conventional banking channels.
