The latest sanctions imposed by the European Union against Russia include strict prohibitions aimed at cutting off support to Russia’s defense-industrial base through crypto asset providers. Additionally, Eurozone operators are now barred from using Russia’s System for Transfer of Financial Messages (SPFS), an alternative to SWIFT developed by Russia to circumvent previous sanctions.
These measures, part of the EU’s comprehensive sanctions package announced on June 24, extend to transactions involving "dual-use goods and technology," sensitive items, battlefield goods, firearms, and ammunition exported or supplied to Russia. The EU Council emphasized that entities outside Russia are forbidden from connecting to SPFS or similar specialized financial messaging services.
Following Russia’s expulsion from SWIFT earlier, jointly enforced by the US, EU, and other Western nations in response to its invasion of Ukraine, Russia has sought alternative financial systems to sustain its economy amidst massive asset freezes. Critics claim Russia has utilized SPFS to evade these sanctions, allegedly with support from countries like Kazakhstan and Kyrgyzstan.
In response, the EU’s latest measures specifically target vessels associated with "Putin’s dark fleet," accused of aiding Russia in evading EU and Price Cap Coalition sanctions. Approximately 27 vessels have been identified under this directive, alongside the addition of 61 entities to the sanctions list for their role in supporting Russia’s military and industrial complex.
The EU’s sanctions aim to intensify economic pressure on Russia amid its ongoing military actions in Ukraine. What are your thoughts on these developments? Share your opinions below.