The European Union is formulating a ban on all cryptocurrency transactions with Russia in a direct effort to cripple Moscow’s ability to finance its military campaign through digital means.
As per a confidential document detailed by the Financial Times, the proposal intends to outlaw transactions with specialized “copycat Russian crypto entities” that have emerged from previously sanctioned platforms to enable trading.
This financial clampdown is part of a broader package that also identifies Kyrgyzstan as a conduit for sanctions evasion. The EU alleges Kyrgyz companies have exported dual-use goods like electronics for use in Russian weapons systems.
Trade data underscores the concern, showing an approximate 800 percent increase in high-priority EU goods entering Kyrgyzstan and a 1,200 percent surge in Kyrgyz exports to Russia, a pattern the EU asserts shows a “continuing and particularly high risk of circumvention.”
