EU Targets Russia Sanctions-Evasion Crypto Network, Moves to Cut Off $120 Billion Payments Web

The European Union has unveiled its 21st sanctions package against Russia, targeting a cryptocurrency payments network used to evade sanctions.

CoinDesk reported on July 24 that the EU added four entities tied to the A7 Network to its sanctions list. New routes linked to Africa were also included.

The bloc also expanded transaction bans to 14 crypto-related service platforms based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus.

Blockchain analytics firm Chainalysis said in a recent report that the A7 Network has processed about $120 billion through its proprietary stablecoin, A7A5. Chainalysis said the network was designed to help Russia circumvent sanctions.

Kaja Kallas, the EU's high representative for foreign affairs and security policy, said in a statement that the package targets more than 100 banks and crypto operators, more than 40 vessels in Russia's shadow fleet, and multiple oil-refining facilities in Russia and Belarus.

The package also introduces, for the first time in EU history, a provision allowing a full transaction ban on third countries. Under the measure, EU businesses could be barred from dealing with crypto service providers used by Russia.

Beyond the crypto sector, the sanctions include asset freezes and bans on providing funds to 94 banks and financial institutions, as well as expanded transaction restrictions on 33 Russian financial institutions.

The measures came three days after Russia's State Duma passed its first comprehensive regulatory bill covering cryptocurrency exchanges, custodians and digital-asset businesses. Most provisions of the law are due to take effect on Sept. 1.