Ukraine Sanctions 60 Firms, 73 Individuals for Crypto War Financing

Ukraine has taken a significant step in its efforts to curb Russian war financing by sanctioning 19 Russian crypto miners, 17 digital asset operators, and five exchanges. Additionally, firms tied to Russia’s financial infrastructure, including those in Cyprus, Kazakhstan, and the UAE, have been blacklisted for facilitating sanctions evasion through cryptocurrency transactions. This move comes as Russia has intensified its assaults in eastern Ukraine, and Ukraine has targeted military infrastructure deep inside Russian territory.

President Volodymyr Zelenskyy signed the decree on Sunday, freezing the assets of 60 firms and 73 individuals suspected of enabling Moscow’s war efforts through digital finance. Zelenskyy described the sanctions as “a special sanctions package” aimed at dismantling Russia’s broader financial infrastructure, including payment equipment manufacturers and intermediaries for international transactions. He highlighted that one company alone, now included in the sanctions list, had funneled several billion dollars for Russia’s military-industrial complex since the beginning of the year.

The sanctions reflect growing concerns over Russia’s use of cryptocurrency to sustain its war efforts, despite being cut off from much of the global financial system. The decree, introduced by Ukraine’s National Bank, targets key players in Russia’s crypto industry, including LLC A7, which released a ruble-pegged stablecoin in February for cross-border transactions. Other sanctioned entities include United Financial Technologies and Bifit, a software provider for Russian banks under sanctions.

Foreign companies involved in facilitating crypto transactions for Russian users have also been targeted. These include TokenTrust Holdings in Cyprus, EXMO RBC LTD in Kazakhstan, and UAE-based firms AWX Solutions, Crypto Explorer, and Bitpapa, which are already under U.S. sanctions. The move underscores the international cooperation in curbing Russia’s use of cryptocurrency to evade sanctions and finance its military operations.

Analysts have previously noted Russia’s extensive use of cryptocurrency to skirt sanctions, citing stealthy non-KYC services and new national laws facilitating crypto settlements. A recent report from the Financial Action Task Force (FATF) and blockchain investigators warned that cryptocurrency is enabling sanctioned states like Russia, Iran, and North Korea to finance weapons programs, drone production, and cyber operations. This latest crackdown by Ukraine comes amid heightened battlefield tensions, with both sides escalating military and economic pressure in a protracted war of attrition.

Over the past week, Russian forces have intensified their assaults along the Pokrovsk and Kupyansk fronts, while Ukraine has stepped up long-range strikes targeting military infrastructure inside Russian territory. Ukrainian officials have also warned of increased Russian drone and missile attacks on the Kharkiv and Sumy regions, raising fears of a new offensive push. The sanctions are part of Ukraine’s broader strategy to disrupt Russia’s financial networks and limit its ability to fund its military operations.