Ukraine Sanctions 60 Companies 73 Russians to Block Crypto War Funding

Ukraine has implemented comprehensive new sanctions targeting Russian individuals and crypto-related entities, aiming to disrupt financial flows that support the Kremlin’s war efforts. The sanctions, announced by President Volodymyr Zelenskyy, include 60 companies and 73 Russian nationals. These measures are part of a broader strategy to block financial schemes increasingly reliant on cryptocurrency transfers, which have become a critical tool for Russia to sustain its wartime logistics as conventional banking routes are restricted.

Zelenskyy emphasized the strategic importance of sanctioning digital assets, noting that one of the sanctioned companies processed billions of dollars in crypto transactions this year, with most of the funds supporting Russia’s defense industry. The Ukrainian government is pushing for synchronized action with the European Union and other allied jurisdictions to limit these flows. The sanctions package was developed in coordination with the National Bank of Ukraine and is part of a broader campaign to stifle Russia’s use of digital assets for sanctions evasion.

Since legalizing crypto payments for cross-border trade, Russian entities, including pro-war groups, have raised millions in crypto to bypass banking restrictions. However, analysts argue that crypto’s limited liquidity and blockchain transparency make it an inefficient tool for large-scale evasion. In contrast, Ukraine has effectively leveraged digital assets for defense funding, receiving over $200 million in crypto donations since the invasion began and ranking among the top nations for crypto adoption.

The latest sanctions target a wide range of entities, including the largest Russian cryptocurrency miners and operators of information systems issuing digital assets. Specifically, the decree targets 55 firms based in Russia, including 19 major crypto mining operations and five crypto exchange operators. These measures are part of a broader effort to block crypto-based financial activities that support Russia's war efforts.

Zelenskyy also announced that the Ukrainian government is set to unveil new measures next week, aimed in part at aligning with European Union sanctions against Russia. He stated that all European packages against Russia should be implemented in the Ukrainian jurisdiction, and vice versa. This coordination is crucial for ensuring that the sanctions have a comprehensive impact on Russian financial activities.

The sanctions come as part of a broader strategy to counter Russian financial schemes. At the end of June, Zelensky imposed sanctions on 52 Russian citizens, 34 Russian companies, and one entity involved in the production of Shahed drones and chip manufacturing machinery. Drones have become one of the defining tools of the full-scale war, used extensively by both Ukraine and Russia for surveillance, long-range strikes, and tactical battlefield advantage.

Ukraine's commitment to disrupting Russian financial activities, particularly those involving cryptocurrency, is evident in these latest measures. By targeting major crypto mining operations and exchange operators, Ukraine aims to cut off a significant source of funding for Russia's war efforts. The coordination with international partners and the alignment with European Union sanctions further strengthen the impact of these measures. As Ukraine continues to face challenges on the battlefield, these financial sanctions represent an important tool in its broader strategy to counter Russian aggression.