The European Union (EU) has imposed new sanctions on Russian cryptocurrency exchange Garantex, citing its links to blacklisted Russian banks and its alleged role in supporting Moscow’s financial networks. The move, announced as part of the EU’s sixteenth sanctions package, marks the first time the bloc has blacklisted a Russia-based crypto exchange.
Garantex Sanctioned Amid Escalating Restrictions
The Council of the EU confirmed the decision in a February 24 press release, stating:
“For the first time, the Council also decided to sanction a cryptocurrency exchange based in Russia, Garantex, which is closely associated with EU-sanctioned Russian banks.”
Garantex had already been blacklisted by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) in 2022, with U.S. authorities accusing the exchange of facilitating illicit transactions, including ransomware payments and darknet market activities.
Sanctions Target Russia’s Financial and Trade Networks
The latest EU sanctions target 48 individuals and 35 entities, including:
- Businesses helping Russia bypass trade restrictions
- Three firms involved in moving Russian crude oil
- A Chinese satellite imagery provider accused of aiding Russia’s military
- Media outlets spreading Kremlin propaganda
This brings the total number of sanctioned individuals and entities linked to Russia to over 2,400, with EU officials signaling further measures could follow if necessary.
Garantex’s History of Illicit Ties
Before the EU’s sanctions, Garantex had already faced global scrutiny. In April 2022, OFAC blacklisted the exchange, accusing it of handling transactions linked to:
- The Russian Ransomware-as-a-Service gang Conti
- The now-defunct Hydra darknet marketplace
- Other illicit actors operating on darknet markets
Reports have also linked North Korea’s Lazarus Group to Garantex, with blockchain analysts suggesting the exchange has been used to launder stolen assets.
Broader Crackdown on Russia’s Crypto Activities
The EU’s decision to sanction Garantex reflects a growing focus on Russia’s use of cryptocurrencies to bypass global financial restrictions. With Garantex now blacklisted by both the EU and the U.S., authorities will likely increase monitoring of crypto transactions linked to Russia in an effort to disrupt its financial networks. EU officials warned that more sanctions could follow, reinforcing the bloc’s commitment to tightening financial controls on entities supporting Russia’s war efforts.
