Ukraine Hits Back, Sanctions 60 Crypto Firms Aiding Russian Sanctions Evasion

President Volodymyr Zelenskyy of Ukraine has signed a decree enacting a robust new package of sanctions targeting individuals and entities facilitating the circumvention of international sanctions against Russia, with a particular focus on those utilizing cryptocurrency schemes to finance the Russian military-industrial complex.

The move, initiated by the National Bank of Ukraine, aims to close loopholes that Russia has exploited to access international financial systems and support its war effort.

Ukraine Targets 60 Legal Russian Entities

The comprehensive sanctions package is synchronized with the measures imposed by Ukraine’s international partners, demonstrating a coordinated global effort to isolate Russia economically.

Notably, the sanctions list encompasses 60 legal entities, including major Russian cryptocurrency miners, operators of information systems involved in the issuance of digital financial assets, financial intermediaries, and crypto exchanges. The authorities accused these entities of providing Russian users with avenues for currency conversion and actively facilitating the circumvention of existing restrictions.

Geographically, the sanctioned entities in Russia with 55 companies registered in the country. Three are located in the United Arab Emirates, and one each in Kazakhstan and Cyprus, highlighting the international scope of the network, facilitating sanctions evasion.

Furthermore, among the sanctioned entities are several key players in the circumvention schemes. This includes the operator of a cross-border settlement platform jointly established by a sanctioned Russian bank and a fugitive Moldovan oligarch, demonstrating the involvement of both state-backed and private actors in these activities.

Sanctions Scales

In his address announcing the sanctions, President Zelensky emphasized the scale of the financial flows passing through these entities, stating:

“Just through one single company, now included in the sanctions list, and only since the beginning of this year, that is, before the sanctions being imposed, the Russians funneled several billion dollars, primarily for the needs of their military-industrial complex. Of course, we will shut down all such schemes.”

In addition to targeting legal entities, the sanctions also extend to 73 individuals, all of whom are Russian nationals. This includes executives and owners of the sanctioned entities, as well as officials from the Central Bank of the Russian Federation, demonstrating a focus on holding individuals accountable for their role in facilitating sanctions evasion.