EU’s 18th Sanctions Package: Russia Financial Sector, Crypto, and Global Evasion Crackdown

The European Union has significantly amplified its economic pressures on Russia, introducing its 18th package of sanctions. This comprehensive new tranche notably broadens restrictions on the financial sector, specifically targets digital asset operations, and for the first time, imposes penalties on financial institutions in third countries found to be facilitating sanctions evasion. This determined set of measures underscores a concerted effort to tighten the economic vise on Moscow, particularly by disrupting its access to international finance and its ability to circumvent existing restrictions through various channels, including cryptocurrencies.

• The European Union has unveiled its 18th package of sanctions against Russia.
• The sanctions designate 22 additional Russian banks, bringing the total to 45 sanctioned financial institutions.
• For the first time, two Chinese financial institutions (Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank) have been sanctioned for aiding evasion.
• The measures include a blanket ban on operations with entities linked to the Russian Direct Investment Fund (RDIF), including four specific companies.
• The price cap on Russian oil will be lowered from $60 to $47.6 per barrel, effective September 3, 2025.

Escalating Financial Sector Restrictions

The latest sanctions specifically designate 22 additional Russian banks, elevating the total number of sanctioned financial institutions to 45. Among the newly listed entities are prominent names such as T-Bank, Centrocredit, Yandex Bank, Metkombank, and Dom.RF. European Union companies are now expressly prohibited from engaging in any form of interaction with these banks. This prohibition encompasses traditional messaging services, specialized banking operations, and critical cryptocurrency transactions. This broad restriction aims to severely limit Russia’s capacity for international financial engagement and disrupt its economic stability.

Targeting Third-Country Facilitators

A significant and unprecedented development within this package is the inclusion of two Chinese financial institutions: Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank. These banks are suspected of providing digital asset services that aided Russia in circumventing Western sanctions. The European Commission has clarified that the prohibition on transactions now extends to third-country entities if they are found to be assisting Russia in evading sanctions. This move signals a broader and more assertive enforcement stance against enablers of circumvention worldwide, reflecting a resolve to close loopholes in the global sanctions regime.

Broadening the Scope: RDIF and Defense Industries

Beyond the banking sector, the sanctions also encompass four companies with direct links to the Russian Direct Investment Fund (RDIF). These include BitRiver, a major cryptocurrency mining operator; Vizorlabs, a video analytics firm; Labadvance, specializing in medical technologies; and Kama, the developer of the “Atom” electric vehicle. Furthermore, the EU has imposed a comprehensive ban on any operations with legal entities in which the RDIF holds a stake, including its subsidiaries, effectively isolating a key Russian sovereign wealth fund and its extensive portfolio companies from international dealings. The defense sector also faces intensified restrictions, with 26 additional entities—including key manufacturers and foreign suppliers—added to the blacklist, alongside eight Belarusian defense enterprises, further curtailing military-industrial capabilities.

Strategic Impact and International Alignment

This formidable package, described by EU officials as “one of the most powerful,” also includes critical adjustments to the price cap on Russian oil. The cap will be lowered from $60 to $47.6 per barrel, a measure set to take effect on September 3, 2025, with provisions for subsequent bi-annual adjustments. These collective measures are strategically designed to diminish Russia’s revenue streams and impair its military-industrial complex. The EU’s actions align with a broader international effort to target Russia’s financial maneuvers, including those involving digital assets. In separate yet complementary actions, the EU had previously sanctioned individuals and entities, such as the Moldovan crypto platform A7, for their alleged involvement in election interference, disinformation, and utilizing cryptocurrencies to bypass international financial restrictions. Concurrently, Ukraine’s President Volodymyr Zelensky has signed a new sanctions package specifically targeting financial schemes involving crypto assets, developed in cooperation with the National Bank of Ukraine to impede Russia’s military economy, underscoring a unified front against such illicit financial activities.