European Union Imposes Sanctions on Russian Cryptocurrency Exchange Garantex for Ties to Blacklisted Banks

The European Union has introduced a new set of sanctions, which now includes the crypto exchange Garantex, previously blacklisted by the U.S. Treasury’s OFAC.

In its latest round of penalties aimed at limiting financial networks supporting Moscow, the European Union has placed Russian crypto exchange Garantex on its sanctions list.

Garantex, which was already sanctioned by the U.S. Treasury’s Office of Foreign Assets Control in 2022, has been included in the E.U.’s sixteenth sanctions package, aimed at 48 individuals and 35 entities “directly supporting the Russian war effort,” according to a press release from the Council of the E.U. on Feb. 24.

The Council highlighted that this is the first instance of sanctioning a cryptocurrency exchange based in Russia, noting that Garantex is “closely associated with EU-sanctioned Russian banks.”

“This marks the first time the Council has decided to sanction a cryptocurrency exchange based in Russia, Garantex, which has close ties to EU-sanctioned Russian banks.”

The Council of the E.U.

This sanctions package also targets businesses assisting Russia in bypassing trade restrictions, three companies involved in the transport of Russian crude oil, and a Chinese satellite imagery provider alleged to support the Russian military. Additionally, news outlets accused of disseminating Kremlin propaganda have also been included in the sanctions.

To date, the European Union has sanctioned over 2,400 individuals and entities connected to Russia, with officials indicating they are prepared to impose further sanctions if necessary.

Garantex was previously sanctioned by OFAC in April 2022 due to its role in facilitating transactions linked to illicit activities and darknet markets, including funds from the Russian Ransomware-as-a-Service group Conti and the now-defunct Hydra darknet marketplace.