EU Includes Crypto Exchange Garantex in 16th Sanctions Package on Russia 

Today, the European Union unveiled its 16th package of sanctions against Russia, marking three years since the full-scale invasion of Ukraine. The package imposed targeted restrictive measures on an additional 48 individuals and 35 entities “responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.”

This latest round of measures expands upon existing restrictions, targeting additional entities and sectors that facilitate and enable Russia’s war efforts. Most notably, this package includes multiple crypto-related designations, including the listing of Garantex, a Russian based crypto exchange previously designated by the United States and United Kingdom, and an expansion of prohibitions on cryptocurrency wallets, accounts, and custody services to Belarusian nationals and residents. 

Garantex: A Landmark Crypto Sanction

One of the most significant elements of this sanctions package for the crypto ecosystem is the EU’s designation of Garantex, a Russia-based cryptocurrency exchange. Along with Iranian exchange Nobitex, TRM estimates that Garantex was responsible for over 85% of inflows to sanctioned entities and jurisdictions in 2024.

Garantex was initially sanctioned by the U.S. Office of Foreign Assets Control (OFAC) in April 2022, citing its facilitation of over USD 100 million in transactions associated with illicit actors and darknet markets, including ransomware groups like Conti and the now-defunct Hydra Market. 

While the UK followed suit, restricting access to the exchange, the EU, until now, had not included Garantex in its sanctions framework. The new designation signifies a unified approach among Western allies in targeting the use of cryptocurrencies for evading sanctions. The EU’s designation includes six wallet addresses associated with Garantex, all of which have been attributed by TRM. Despite sanctions, Garantex continues to be a major facilitator of illicit and high-risk activity, responsible for billions of dollars in transactions each year. 

Additional Entities and Expansion of Restrictions

The EU sanctions package also designated several other entities that have previously been sanctioned by the U.S. Office of Foreign Assets Control (OFAC) and which TRM has been monitoring. These include:

• SouthFront, a Russian propaganda website targeting global audiences founded in 2015 and based in Crimea. SouthFront was sanctioned by OFAC in April 2021 for activities related to disinformation campaigns and election interference.  
• OKO Design Bureau, a small drone production company responsible for the product of cheap, multifunctional UAVs. OKO Design Bureau was sanctioned by OFAC in May 2024. 
• Lobaev Foundation, a unit of the Lobaev Group that collects funds to finance the projects of Lobaev Arms, whose rifles are used by the Russian Armed Forces. The Lobaev Foundation was sanctioned by OFAC in February 2024. 

The package also extends the EU’s ability to target third third country financial institutions and crypto assets providers who enable the circumvention of the Oil Price Cap - further extending the need to have awareness of crypto use in trade transactions. 

In addition to listing entities, the previous ban on cryptocurrency services to Russian nationals and residents has been extended to Belarus. The new package will extend a prohibition on the “provision of crypto-asset wallet, account or custody services to Belarusian persons and residents and, in order to limit circumvention of this prohibition, it includes a prohibition on Belarusian nationals or natural persons residing in Belarus owning or controlling, or holding any posts on the governing bodies of, the legal persons, entities or bodies providing such services.”

UK also announces Russia sanctions package

Marking the third anniversary of Russia's full-scale invasion of Ukraine, the United Kingdom also unveiled its most extensive sanctions package against Russia since the early days of the conflict. This comprehensive package includes 107 new sanctions targeting entities and individuals that continue to support Russia's military aggression.

Key aspects of the sanctions are:

• Disrupting Military Supply Chains: The UK is focusing on producers and suppliers of machine tools, electronics, and dual-use goods essential for Russia's military operations. These entities are located in various countries, including Central Asian states, Turkey, Thailand, India, and China—the latter being a significant supplier of critical components to Russia.
• Targeting Foreign Support: For the first time, the UK is utilizing new powers to sanction foreign financial institutions aiding Russia's war efforts. This includes sanctions against Kyrgyzstan-based OJSC Keremet Bank, aiming to disrupt Russia's access to the international financial system.
• Addressing North Korean Involvement: Sanctions have been imposed on North Korean Defense Minister No Kwang Chol and other senior officials for deploying over 11,000 DPRK forces to Russia, who have suffered significant casualties.
• Cracking Down on Technology Smuggling: Entities like LLC Grant-Trade and its proprietors, Marat Mustafaev and Dinara Mustafaeva, have been sanctioned for funneling advanced European technology into Russia to bolster its military capabilities.

While there was no specific crypto nexus to the UK’s rollout, Foreign Secretary David Lammy emphasized that the action underscores the UK's unwavering commitment to Ukraine and focused on disrupting military supply lines and blocking financial resources.

Conclusion

The EU’s 16th sanctions package represents a significant escalation in financial restrictions against Russia and its allies. The inclusion of Garantex and its associated wallets marks a major step in combating illicit financial flows through cryptocurrency by the European Union. By extending sanctions to Belarus, the EU has also reinforced and strengthened its commitment to closing loopholes that could undermine previous measures. As these sanctions take effect, monitoring their enforcement and impact will be crucial in assessing their effectiveness in restricting Russia’s access to global financial systems.

For more details, you can read the official EU press briefing here and the full legal text here.