Russia’s $120B Crypto Network Faces EU Pressure Under New Sanctions Package

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The European Union is preparing to intensify its crackdown on Russia’s crypto channels by considering a ban on foreign digital asset service providers for the first time. The measure would target 14 unidentified crypto platforms believed to be linked to Russia-related activity.

The EU’s 21st sanctions package expands restrictions against the cross-border A7 network, adding four entities connected to its operations, including newly discovered ties in Africa.

The bloc is also extending transaction restrictions to 14 crypto service providers based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus.

According to blockchain analytics firm Chainalysis, the A7 network and its A7A5 stablecoin have processed nearly $120 billion in transactions. The network has been identified as a potential tool supporting Russia’s efforts to bypass international financial sanctions.

EU foreign policy chief Kaja Kallas said the latest measures target more than 100 banks and crypto operators, over 40 vessels connected to Russia’s shadow fleet, and several oil facilities in Russia and Belarus.

The new sanctions follow the EU’s previous package announced in April, which officials described as the largest set of measures against Moscow in two years. At the time, the bloc warned that Russia was increasingly turning to cryptocurrencies for international payments.

The announcement comes days after Russia’s State Duma approved a broad crypto regulation framework, with most rules expected to take effect on September 1. The legislation creates a legal structure for crypto exchanges, custodians, service providers, traders, and investors.

The latest EU package introduces a potential new tool allowing authorities to block transactions between EU entities and third-country crypto providers suspected of helping Russia evade restrictions.

Alongside the crypto measures, the EU is imposing asset freezes and financial restrictions on 94 banks and major institutions, while expanding transaction bans to 33 additional Russian financial organizations.