Europe is widening its sanctions net beyond Russia itself, moving directly against foreign banks and crypto networks accused of keeping Moscow’s financial lifelines open.
EU Targets Central Asian Banks Over Russia Crypto Links
The European Union is preparing to blacklist several banks in Kyrgyzstan and other third countries as part of its proposed 20th sanctions package, after concluding that they helped facilitate crypto-linked transactions for Russia.
Two Kyrgyz lenders, Keremet Bank and Capital Bank of Central Asia, are named in a draft proposal.
Banks in Tajikistan and Laos are also expected to be included.
If approved by all 27 EU member states, the measures would cut the affected institutions off from financial dealings with individuals and companies across the bloc.
European officials say the focus has shifted towards countries and intermediaries that are helping Moscow bypass existing restrictions, rather than only targeting Russian firms directly.
Brussels Shifts Focus To Countries Helping Russia Bypass Sanctions
According to the draft document, Brussels now sees third countries as a critical channel for sanctions evasion, particularly in payments and trade linked to digital assets.
An EU official statement dated 6 February said:
“We are listing 20 more Russian regional banks, and we will take measures against cryptocurrencies, companies trading them, and platforms enabling crypto trade, to close an avenue for circumvention. We are also targeting several banks in third countries involved in facilitating illegal trade in sanctioned goods.”
The move reflects growing concern inside the European Commission that earlier sanctions, aimed mainly at Russian entities, are no longer sufficient to disrupt how money and goods move across borders.
Crypto And Stablecoins Move To The Centre Of Sanctions Enforcement
A central part of the new package is a much tougher stance on crypto activity linked to Russia.
The European Commission is proposing a near-total ban on crypto transactions connected to Russia, covering crypto platforms, financial intermediaries and payment channels that support such activity, according to internal documents reviewed by the Financial Times.
The draft proposal states:
“In order to ensure that sanctions achieve their intended effect [the EU] prohibits to engage with any crypto asset service provider, or to make use of any platform allowing the transfer and exchange of crypto assets that is established in Russia.”
Officials argue that targeting individual platforms has failed because sanctioned firms quickly set up replacement operations.
Crackdown Aimed At Garantex Successors And Ruble Stablecoins
The new restrictions are designed to prevent the rise of successors to Garantex, the Moscow-linked crypto exchange sanctioned by the United States in 2022 for facilitating cybercrime.
European officials have also pointed to newer Russian payment networks and ruble-linked digital assets that emerged after earlier enforcement actions.
Among the platforms and assets cited in the internal documents are the payment network A7 and its ruble-pegged stablecoin A7A5. The stablecoin has previously been used to move funds between Garantex and the Kyrgyz-based exchange Grinex.
Despite being targeted by the EU, the UK and the US, recent reports indicate that the A7A5 stablecoin has already processed around $100 billion in total transactions.
Kyrgyzstan Under Pressure After Earlier US And UK Sanctions
Kyrgyzstan has already been in the spotlight for its links to Russian payment and trade flows.
Capital Bank was previously sanctioned by the United Kingdom over suspicions that it was being used by Russia to acquire military-related supplies.
Keremet Bank was earlier blacklisted by the United States.
A network of crypto platforms linked to Russia’s war financing, including the Kyrgyz-based issuer of the A7A5 stablecoin, has also been targeted by Washington and London.
Last autumn, Kyrgyzstan’s President Sadyr Zhaparov appealed directly to Western leaders after earlier sanctions were imposed, urging them to avoid “politicizing economy.”
More recently, the president signed new legislation transferring oversight of cryptocurrency and stablecoin issuance and circulation to his own administration.
Dual-Use Goods To Kyrgyzstan Face New Export Ban
Beyond finance and crypto, the draft sanctions package would also restrict exports of sensitive equipment to Kyrgyzstan.
The proposal includes a ban on supplies of dual-use items such as metal-cutting machines and communications equipment, including modems and routers, after EU officials concluded that Kyrgyz companies had helped redirect prohibited goods to Russia.
The European Commission and the EU’s diplomatic service say this is the first time the bloc’s so-called anti-circumvention tool is being used directly against third countries.
Ports And Metals Added As Brussels Expands Trade Controls
The draft package also targets infrastructure and commodities outside Russia.
Two ports accused of handling Russian oil shipments, Kulevi in Georgia and Karimun in Indonesia, are set to be added to the sanctions list.
In parallel, the EU plans to ban imports of a range of metals, including nickel, iron, unrefined and processed copper, as well as scrap metals such as aluminium.
European Commission President Ursula von der Leyen said on 6 February that the latest measures mark a shift away from the G7 oil price cap and towards a full maritime services ban on Russian crude.
Digital Ruble And More Banks Placed On The List
The package would also introduce a full prohibition on transactions involving Russia’s digital ruble, the central bank digital currency developed by Moscow in recent years.
In total, the European Commission is proposing to sanction 20 additional Russian regional banks, alongside further crypto service providers and payment platforms.
The sanctions would also expand asset freezes and travel bans to cover another 30 individuals and more than 60 companies, including Russia’s digital ruble platform.
Among the companies named is Bashneft, a subsidiary of the oil giant Rosneft, although Rosneft itself and another major Russian oil group with operations in Europe have not yet been included.
Russia’s Crypto Push Continues Despite Pressure
The proposed EU measures come as Russia continues to formalise its domestic digital asset framework.
The Central Bank of Russia has unveiled regulatory proposals that would allow both retail and qualified investors to access digital assets through licensed platforms.
Russia’s State Duma is also advancing legislation to regulate the seizure of crypto assets in criminal cases and to address money laundering and corruption risks.
Meanwhile, Sberbank, Russia’s largest lender by assets, has announced preparations to offer crypto-backed loans to corporate clients, saying it is working with the central bank on the necessary infrastructure and regulatory arrangements.
Russia has already authorised the use of digital assets for cross-border payments in an effort to keep international trade flowing under sanctions.
Unanimous Approval Still Required Inside The EU
The 20th sanctions package must still be approved unanimously by all EU member states before it can take effect.
Three member countries have expressed reservations during internal discussions, according to diplomats briefed on the negotiations.
The European Commission had initially hoped to secure adoption before the fourth anniversary of Russia’s invasion of Ukraine on 24 February 2026.
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