The European Commission has proposed a complete ban on any operations with cryptocurrencies related to Russia. This step is intended to close off Moscow's ways to circumvent sanctions.
"Crypto ban"
As stated in the document reviewed by FT, Brussels has decided to abandon attempts to ban specific "mirror" Russian crypto companies, as this only leads to the creation of new structures.
"(EU - ed.) prohibits interaction with any service provider of crypto assets or the use of any platform for the transfer and exchange of crypto assets based in Russia," the internal document of the European Commission states.
The block wants to stop the activities of the "heirs" of the Garantex exchange (the largest cryptocurrency exchange in the Russian Federation) and limit the use of the Russian payment platform A7 along with its staking A7A5.
It is also proposed to add 20 banks to the sanctions list and completely prohibit any operations with the digital ruble of the Central Bank of the Russian Federation.
Secondary sanctions: Kyrgyzstan under pressure
Brussels also proposes to ban the export of dual-use goods (electronics, machinery) to Kyrgyzstan.
Data from the European Commission indicates an abnormal increase in trade: imports of priority goods from the EU to Kyrgyzstan have increased by 800%, while exports from the country to Russia have risen by 1200%. EU Special Representative David O'Sullivan plans to visit Kyrgyzstan this month.
Review status
To implement these measures, unanimous support from the 27 countries of the bloc is required. According to FT sources, three states have expressed doubts, wanting more information. The initial plan of the European Commission envisioned the agreement of the package by February 24.