EU Unveils 21st Sanctions Package Targeting Russia’s $120 Billion Crypto Network

The European Union has expanded its sanctions against Russia with a 21st package that includes four new designations targeting the cross border A7 network, including its recently established connections to Africa. The EU is also extending transaction bans to 14 unnamed crypto related service platforms operating in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus.

According to Chainalysis, the A7 network, which powers the A7A5 stablecoin, has processed nearly $120 billion to date and was purpose-built to help Russia evade international sanctions.

Broad Crackdown Spans Banks, Ships and Refineries

Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, said the package targets more than 100 banks and crypto operators, over 40 vessels tied to Russia’s shadow fleet, and several oil refineries in Russia and Belarus. This follows an earlier sanctions package announced in April, which the EU had described at the time as its largest measure against Russia in two years, citing Russia’s growing reliance on cryptocurrency for international transactions.

Timing Follows Russia’s New Crypto Legislation

The latest sanctions arrive just three days after Russia’s State Duma passed legislation establishing the country’s first comprehensive crypto regulatory framework, with most provisions set to take effect September 1. That law creates formal rules for crypto exchanges, depositories, digital asset providers, traders and investors.

First-Ever Third-Country Crypto Services Ban Introduced

The new package marks the first time the EU has introduced the possibility of a full ban on third-country crypto asset services, giving it the power to block any transaction between an EU-based operator and any crypto provider used by Russia.