๐๐ก๐ ๐๐ ๐๐ข๐ญ๐ฌ ๐๐๐ซ๐ ๐๐ ๐๐ข๐ง๐ฌ๐ญ ๐๐ก๐ ๐๐ซ๐๐ฆ๐ฅ๐ข๐ง ๐๐ข๐ญ๐ก ๐๐๐๐ข๐๐๐ฅ ๐๐๐จ๐ง๐จ๐ฆ๐ข๐ ๐๐๐ง๐๐ญ๐ข๐จ๐ง๐ฌ ๐จ๐จ๐จ
The European Union is not known for doing things halfway, especially when it comes to economic sanctions. This time, the goal is clear: to put pressure on the Kremlin by targeting its crypto infrastructure and alternative financial means. Itโs a real blow to Russia, whose repercussions could be felt far beyond European borders.
๐๐ก๐ ๐๐ ๐ญ๐๐ซ๐ ๐๐ญ๐ฌ ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐๐ฌ๐ฌ๐๐ญ ๐ฉ๐ซ๐จ๐ฏ๐ข๐๐๐ซ๐ฌ ๐ช
The latest European Union sanctions directly target eurozone operators engaging with crypto asset providers facilitating transactions in favor of the Russian defense effort.
This is about a total ban on these interactions, a drastic measure intended to cut off the financial resources supporting the Kremlinโs war machine.
This decision marks a new stage in the economic war the EU is waging against Russia. By banning these transactions, the EU hopes to dry up the financial flows that fuel Russian military capabilities. Crypto asset providers thus find themselves in the crosshairs, forced to comply or face severe consequences.
But thatโs not all. The new sanctions also include a ban on using SPFS, the financial message transfer system developed by Russia to circumvent the exclusion from SWIFT.
This ban aims to further isolate Russia from international financial networks, complicating its cross-border transactions even more.
๐๐๐ง ๐จ๐ง ๐ญ๐ก๐ ๐๐ฎ๐ฌ๐ฌ๐ข๐๐ง ๐๐๐ ๐ ๐ฌ๐ฒ๐ฌ๐ญ๐๐ฆ โ
SPFS, designed as a Russian alternative to SWIFT, plays a crucial role in Russiaโs attempts to mitigate the impact of Western economic sanctions.
By banning European entities from connecting to SPFS, the EU tightens its grip on Russian financial transactions. This ban makes it more difficult for Moscow to use this system to support its military operations.
The EU Council has made it clear that this ban applies to all European operators. This includes those based inside and outside of Russia. Even foreign subsidiaries of European companies must comply with this new regulation or face sanctions.
Indeed, these restrictive measures add to a series of already severe sanctions imposed on Russia since the beginning of its invasion of Ukraine.
๐๐ฎ๐ญ๐ข๐งโ๐ฌ โ๐๐๐ซ๐ค ๐๐ฅ๐๐๐ญโ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐ฉ๐จ๐ญ๐ฅ๐ข๐ ๐ก๐ญ โ
Russia has not given up on its ambitions. Some tactics used to circumvent the sanctions have been particularly ingenious. Among them, the use of โPutinโs dark fleet.โ This is a fleet of tankers operating discreetly to continue exporting oil despite the restrictions.
This fleet, accused of helping Russia circumvent the sanctions, is now targeted by the EU. By identifying and sanctioning these ships, the EU wants to make Russiaโs operations more difficult. It also aims to reduce its oil revenues, an essential source for funding its war efforts.
The EU Council has announced the identification of 27 ships that are part of this fleet. Indeed, these ships will be subject to specific sanctions. Additionally, 61 new entities have been added to the blacklist for their direct support of the Russian war effort. This illustrates an intensification of efforts to economically isolate Russia.
The European Union, through these radical economic sanctions, sends a clear message. It is determined to use all means at its disposal to put pressure on the Kremlin and reduce its ability to wage war in Ukraine. The target is multiple: from crypto asset providers to the tankers of the โdark fleet,โ including the SPFS system.
As Russia continues to seek ways to circumvent these sanctions, the effectiveness of these measures remains to be seen. What is certain is that the EU does not intend to ease the pressure anytime soon. Each new initiative testifies to its willingness to strike hard and in a targeted manner.
Reference from cointribute.
