European leaders have approved a new set of sanctions aimed at targeting key sectors of the Russian economy, such as energy, finance, and trade, in an effort to tighten measures against circumvention of EU sanctions.
In a press release on June 24, the European Council disclosed that the latest package includes restrictive measures affecting an additional 116 individuals and entities involved in actions that undermine or threaten Ukraine’s territorial integrity, sovereignty, and independence. According to Reuters, this latest action expands the sanctions list to encompass over 2,200 entities.
“The 14th package of sanctions underscores our solidarity in supporting Ukraine and our determination to curb Russia’s unlawful activities against Ukrainians, including attempts to evade EU measures.”
Josep Borrell, High Representative of the EU for Foreign Affairs and Security Policy
The European Council has implemented several stringent measures aimed at curbing sanctions evasion, including a ban on transactions involving crypto providers established outside the EU. This ban applies when these entities facilitate transactions supporting Russia’s defense-industrial base by exporting, supplying, selling, transferring, or transporting dual-use goods and technology, sensitive items, battlefield goods, firearms, and ammunition to Russia.
Details on how European countries will monitor the industry for potential violations of these sanctions remain unclear, although industry experts anticipate rigorous due diligence efforts will be necessary.
This move follows recent agreements between the European Council and Parliament to impose stricter regulations on crypto firms, enhancing anti-money laundering (AML) measures in the sector. Starting in January, crypto firms must conduct thorough customer due diligence, particularly for transactions exceeding €1,000, to prevent cryptocurrencies from being used for illegal activities or sanctions evasion.
