EU Reveals Details of Russian Sanctions Package in New Q&A, Includes Updated Crypto Provisions

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Julia Smith

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Julia is an experienced editor with a passion for covering a wide variety of beats. She loves all things politics and regularly covers regulatory updates on emerging technology here for Crypto News.

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December 19, 2023 12:42 EST

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The European Union (EU) revealed details on their latest package of sanctions against Russia, which includes provisions on crypto, in a newly released Q&A this week.

Enacting bans and closing loopholes

According to the Q&A posted on the website of the European Commission, the updated sanctions seek “to impose additional import and export bans on Russia, combat sanctions circumvention and close loopholes.”

In particular, the updated sanctions package seeks “to limit circumvention of the prohibition on the provision of crypto-asset wallet, account or custody services to Russian persons and residents by including a ban on Russian nationals or natural persons residing in Russia from owning or controlling, or holding any posts on the governing bodies of, the legal persons, entities or bodies providing such services.”

In addition to the stringent crypto provisions, the latest sanctions package includes stricter asset freeze regulations, tightened energy measures, and stronger anti-circumvention measures.

Moreover, the sanctions call for additional asset freezes belonging to 140 key actors and entities who have shown support for Russia’s war of aggression against Ukraine, including military defense companies and personnel, those responsible for the Russian “re-education” of Ukrainian children, and orchestrators of recent fraudulent elections held in occupied Ukrainian territory.

Crypto at the front of Russian war-efforts

The latest sanction package against Russia is the 12th launched by the European Union since February 2022 following Vladimir Putin’s initial invasion of Ukraine.

Originally, in the spring of 2022, Russian payments to European crypto wallets were capped at 10,000 euros.

However, by the fall of 2022, the EU tightened its prohibition on all crypto-asset wallets were tightened by banning all crypto-asset wallets, accounts, and custody services in an attempt to curb Russia’s war efforts.

“The EU stands firmly with Ukraine and its people”

Despite Russia’s recent invasion of Ukraine, this is not the first time the country has been hit with international penalties for its aggressive tactics in the eastern European nation.

Previously, the EU imposed sanctions on Russia for its destabilizing the region in 2014.

“The EU stands firmly with Ukraine and its people, and will continue to strongly support Ukraine’s economy, society, armed forces, and future reconstruction,” stated a recently released press statement from the EU. “EU sanctions are at the core of the EU’s response to Russia’s unjustified military aggression against Ukraine, as they degrade Russia’s military and technological capability, cut the country from the most developed global markets, deprive the Kremlin from the revenues it is financing the war with, and impose ever higher costs on Russia’s economy.”