EU targets Russia's sanctions evasion cryptos, allies in 20th package of sanctions

Russian ruble-pegged stablecoins like A7A5 and RUBx will be hit by the EU’s newest sanctions aimed at further cutting Moscow’s financial flows.

The restrictions introduced by Brussels seek to thwart transactions using both traditional and digital currencies by attacking processing entities.

Europe imposes ‘total ban’ on Russian crypto platforms

The European Union is now banning all Russia-based service providers and platforms allowing the transfer and trading of crypto assets.

The measure is part of the bloc’s 20th round of sanctions over the invasion of Ukraine, adopted by the European Council. It affects entities operating out of other jurisdictions as well.

Announced as the biggest and most comprehensive package approved in the past two years, the set also targets 20 Russian banks and four financial institutions in third countries.

The transaction ban has been slapped for bypassing EU restrictions or for connecting to Russia’s System for Transfer of Financial Messages (SPFS), the Russian alternative to SWIFT.

Brussels is recognizing, however, that in the face of more impenetrable barriers in the traditional financial space, Moscow has been turning toward decentralized digital money. An official press release highlighted:

“Due to sweeping sanctions on its financial sector, Russia is becoming increasing reliant on cryptocurrencies for international transactions.”

EU aims at rubble-pegged stablecoins A7A5 and RUBx

Indeed, Russia has been expanding the use of digital assets in foreign trade, most notably the stablecoin A7A5, which is backed by Russian ruble deposits in a sanctioned bank.

The fiat-pegged cryptocurrency, reportedly created by the Russian company A7, is now issued by the Kyrgyzstan-registered firm Old Vector, which claims to be “fully independent.” On Thursday, the Council said:

“Noting this trend, the EU is designating a Kyrgyz entity operating an exchange where significant amounts of the government backed stablecoin A7A5 is traded.”

A7A5 was launched on the Tron and Ethereum networks in early 2025 and has since managed to take over nearly half of the global market for non-dollar stablecoins.

It processed transactions worth more than $100 billion in less than a year, according to a report released by the blockchain analytics firm Elliptic in January 2026.

The EU is banning transactions in another Russian cryptocurrency as well, RUBx. The latter is tied to the Russian national currency, too.

Based on Tron, the digital token was developed and launched by the sanctioned state-owned defense and technology giant Rostec last summer.

Brussels is also prohibiting all EU support for the development of the digital ruble, the central bank digital currency (CBDC) issued by the Bank of Russia.

“Moreover, the Union is introducing a total sectoral ban on providers and platforms established in Russia that allow for the transfer and exchange of crypto assets,” the announcement emphasized.

“Lastly, netting transactions with Russian agents are now forbidden to avoid the circumvention of EU sanctions,” as per the decision made by the leaders of the 27 member states.

Belarus’ crypto role also targeted

The latest EU sanctions are targeting another Russian ally, besides Kyrgyzstan. “Today’s package continues to address Belarus’ role in enabling Russia’s war of aggression,” the Council stated.

The measures regarding Minsk are “intended to mirror those imposed on Russia” and include “measures on crypto and restrictions on the provision of cyber security services,” according to the statement.

At the start of this year, its long-time leader, President Alexander Lukashenko, signed a decree authorizing the establishment of “crypto banks” in the country.

This week, a top executive of its central bank told local media these institutions will be able to work with 26 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Toncoin (TON), and Solana (SOL).

They will also be allowed to carry out 11 operations with them, including offering crypto deposits and loans, using coins as collateral, conducting staking operations, processing transfers, issuing their own digital tokens, and providing exchange and storage services.

The European Council’s latest decision extends the Belarus sanctions regime until February 28, 2027. It comes alongside the final approval of a €90 billion loan for Ukraine.

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