Armenia (CoinChapter.com) - The European Union (EU) has imposed sanctions on the Russian cryptocurrency exchange Garantex for its role in helping entities circumvent financial restrictions related to the conflict in Ukraine. The action is part of the 16th EU sanctions package aimed at restricting Russia's access to digital assets used to circumvent economic sanctions.


On February 24, the European Council issued a statement confirming that Garantex is a financial network with close ties to sanctioned Russian banks. The Council noted that the exchange played a role in transactions supporting Russian military operations, marking the first time the EU has directly imposed sanctions on a Russian cryptocurrency exchange.

Garantex’s role in circumventing financial restrictions
The EU Council said Garantex facilitated financial transactions for Russian entities that were already subject to existing sanctions. Recent reports have shown that Russians are increasingly using cryptocurrencies such as Bitcoin and USDT to reduce the impact of Western financial restrictions. The EU move is intended to disrupt these activities by cutting off Garantex from the European financial system.
Authorities have pointed out that Garantex has links to sanctioned Russian financial institutions, making it a significant target for economic sanctions. As part of the sanctions, its assets in the EU have now been frozen, and EU businesses and individuals are prohibited from trading with the exchange.

Currently more than 2,400 individuals and entities are sanctioned
The 16th EU sanctions package expands restrictions to 48 individuals and 35 entities, bringing the total number of sanctioned individuals and organizations to more than 2,400. The EU said the new sanctioned entities actively support Russia's military and economic efforts. As a result, their assets are frozen and their ability to conduct financial transactions with European institutions is hampered.

Garantex has previously been sanctioned by the United States and the United Kingdom
The EU’s decision follows similar actions by the United States and the United Kingdom, where authorities in 2024 investigated Garantex’s role in processing around $20 billion in USDT transactions.
Earlier, the U.S. Treasury Department’s Office of Foreign Exchange Control (OFAC) added Garantex’s wallet to its Specially Designated Nationals (SDN) list. The U.S. Treasury Department accused the exchange of failing to comply with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, which led to illegal transactions on its platform.