Ukraine and the European Union are moving to expand sanctions against Russia by targeting cryptocurrency networks, mining operations and payment channels used to support military production and evade existing financial restrictions.
Ukraine, EU Jointly Aim New Sanctions at Russia’s Crypto Infrastructure
9 February 2026 - 11:33 CET
By Matt Neill
The measures mark a shift toward crypto-specific enforcement as Western governments seek to close alternative funding routes that have grown in importance since Russia was cut off from much of the global banking system.
Ukrainian President Volodymyr Zelenskyy signed decrees on 8 Feb implementing decisions of Ukraine’s National Security and Defense Council to impose sanctions on 66 individuals and 62 legal entities linked to Russia’s military-industrial complex and financial infrastructure.
Some of the measures are expected to be incorporated into the EU’s 20th sanctions package later this month.
Crypto payment networks and mining in scope
Ukrainian officials said the sanctions include entities connected to the A7 cryptocurrency network, which authorities say has been used to facilitate payments for components involved in Russian missile and drone production.
The package also targets organizations supporting Russia’s domestic crypto market, including groups involved in large-scale virtual currency mining and payment service providers that enable crypto-based settlement. Sanctions extend to cryptocurrency owners and exchanges identified as part of the network.
Ukrainian officials said crypto channels have become an increasingly important mechanism for circumventing sanctions, enabling payments to move outside traditional correspondent banking systems. The government said the measures aim to disrupt both financing flows and procurement chains tied to Russia’s defence sector.
Zelenskyy adviser Vladyslav Vlasiuk said Ukraine is coordinating closely with partners to ensure that domestic sanctions decisions are reflected in international frameworks, including the forthcoming EU package.
EU sanctions and financial system pressure
The European Commission confirmed on 6 Feb that its proposed 20th sanctions package includes measures targeting cryptocurrencies, trading platforms, and companies that facilitate crypto transactions linked to Russia.
European Commission President Ursula von der Leyen said the package focuses on financial services and alternative payment channels that Russia has used to sustain economic activity under sanctions. The measures include listings of additional banks, crypto-related entities and service providers.
The Commission said crypto assets have emerged as a key area of concern as Russia seeks to build parallel financial infrastructure. Officials said enforcement will focus on platforms, intermediaries and third-country actors that enable sanction evasion.
The crypto-focused sanctions come as Russian banks and companies increasingly integrate digital assets into formal financial activity. In recent months, major lenders have moved to expand Bitcoin-backed lending and mining-related services as sanctions restrict access to traditional capital markets.
The proposed EU package requires approval by member states and could be adopted before the end of February. Ukrainian officials said further sanctions proposals are being prepared as crypto markets evolve.
