Banks, Tankers, and Cryptocurrency: The EU Has Struck a Blow to Russia’s Financial System
24 July 00:57
The European Union has approved its 21st package of sanctions against Russia, which officials in Brussels have called the most extensive in the past four years. The new restrictions target Russia’s financial system, energy sector, military-industrial complex, cryptocurrency services, and the “shadow fleet” that Moscow uses to circumvent oil sanctions. This is stated in a decision by the Council of the European Union, according to "Komersant Ukrainian"
A total of 218 individuals and entities have been added to the new sanctions list, including 48 individuals and 170 companies and organizations.
Nearly 100 Russian banks have been targeted by the sanctions
One of the main focuses of the new package is to increase pressure on Russia’s financial system.
The EU has imposed sanctions on 94 Russian banks and financial institutions, including the Moscow Exchange, as well as foreign banks that helped circumvent previous restrictions.
In addition, 33 banks will be cut off from the international SWIFT system, which will further complicate international payments for Russian businesses.
The EU has tightened controls on cryptocurrencies
The new package also expands sanctions targeting the cryptocurrency sector.
The restrictions target cryptocurrency service providers and platforms that, according to the EU, were used to conduct financial transactions in circumvention of international sanctions.
Brussels emphasizes that crypto assets are increasingly being used to circumvent financial restrictions, so oversight in this sector will be strengthened.
A New Blow to the “Shadow Fleet”
A separate set of sanctions is dedicated to combating Russia’s “shadow fleet.”
Another 41 vessels used to transport Russian oil in circumvention of international restrictions have been added to the sanctions list.
This brings the total number of vessels under EU sanctions to 673.
Companies, operators, and individuals who facilitated this scheme have also been sanctioned.
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Sanctions Target the Oil Industry
The European Union has also expanded restrictions on Russia’s energy sector.
The new package includes:
- three Russian oil refineries;
- one major Belarusian refinery;
- oil traders;
- companies involved in the export of Russian oil;
- additional restrictions on Russian ports and airports.
At the same time, EU countries agreed to leave the price cap on Russian oil at $44.10 per barrel until July 2027, without automatic review. This decision is due to instability in the global oil market.
Russia’s defense industry is now subject to new sanctions
The new restrictions have also affected Russia’s military-industrial complex.
The sanctions lists include more than fifty companies that:
- manufacture drones;
- manufacture dual-use components;
- supply the Russian military with electronics;
- operate in the field of military technology.
The sanctions also extend to companies in the gold mining, diamond, metallurgical, and mining industries, which generate revenue for the Russian budget.
Another 218 individuals and companies were added to the list
The new package is the largest in terms of the number of individual sanctions since the beginning of 2022.
In total, the new restrictions apply to:
- 48 individuals;
- 170 legal entities.
Their assets in the EU are subject to freezing, and EU citizens and companies are prohibited from providing them with financial resources. Individuals are also barred from entering EU countries.
Kaja Kallas: This Is the Strongest Package in Recent Years
EU High Representative for Foreign Affairs Kaja Kallas stated that the new package is the most powerful in the last four years.
According to her, the EU will continue to ramp up economic pressure on Russia to cut off funding for the war against Ukraine.
Officials in Brussels emphasize that the sanctions are primarily aimed at sectors that generate revenue for the Russian budget and support the Kremlin’s military machine.
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