EU intensifies sanctions against Russia: eighteenth package and its consequences for the Kremlin
The European Union officially approved a new, eighteenth, round of sanctions against the Russian Federation, which stands out for its specific focus on the country's financial sector. This comprehensive set of restrictions aims to limit Moscow's ability to conduct foreign trade, bypass existing sanctions, and undermine its financial stability. Under this new strategy, transactions with 22 major Russian banks are completely prohibited, including well-known financial institutions such as Bank Dom RF, Saint Petersburg Bank, CentroCredit, MSP Bank, Yandex Bank, among others. Importantly, this step replaces the previous ban on access to the SWIFT system, significantly restricting the international transfer capabilities of Russian banks. In addition, the sanctions expand the list of restrictions related to crypto-assets, prohibiting transactions with anyone involved in circumventing sanctions, including Russian technology providers and companies operating in the cryptocurrency sector. The list also includes regional Chinese banks that previously participated in Russia's financial market. EU authorities emphasize that now it is no longer necessary to prove that activities support sanctions circumvention or bolster Russia’s financial resilience. Furthermore, the export of specialized software for banking and financial infrastructures, such as ATMs and POS terminals, is banned. A critical part of the new restrictions is the prohibition of transactions with Russia’s largest direct investment fund and its subsidiaries, including BitRiver — Russia's leading mining infrastructure operator. Experts suggest these measures will significantly impact Russia’s strategic economic projects and overall stability, deepening its disconnection from the global financial system, complicating participation in international transactions, and restricting innovation and large-scale investment opportunities. Analysts believe these sanctions are among the most severe and comprehensive since the start of the conflict and could redefine Russia’s economic landscape in the international arena.