60 Russian Crypto Firms Sanctioned by Ukraine for Evading Restrictions

Ukraine has imposed sanctions on 60 crypto firms in Russia, including officials in the Central Bank of Russia. Will these sanctions be successful?

Russia and Ukraine have been in conflict since February 20, 2014, when Russia annexed Crimea. The invasion of Ukraine in 2022 marked a major escalation. As of July 7, 2025, the conflict has remained for over three years, with daily attacks causing casualties and property damage on both sides.

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Ukraine Sanctions Crypto Firms In Russia

On July 6, 2025, Ukrainian President Volodymyr Zelenskyy approved a comprehensive sanctions package targeting 60 Russian crypto firms and 73 individuals, including Central Bank of Russia officials.

These sanctions aim to disrupt Russia’s ability to evade Western restrictions through crypto assets. If successful, these sanctions could strengthen Ukraine’s efforts to isolate Moscow’s financial infrastructure in the ongoing conflict.

Specifically, Ukraine targeted Russian crypto mining firms and digital asset issuance processors.  

Russia has already been disconnected from the SWIFT global payment network, and restrictions have been imposed on its $640 billion foreign currency reserves.

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Russia Turns To Crypto

However, Russia has increasingly relied on BTC ▲0.84% and some of the best cryptos to buy to circumvent these sanctions to facilitate trade and maintain economic stability. Russian oil companies have reportedly used Bitcoin and top cryptos to settle transactions with non-sanctioned countries like China and India.

In July 2024, the Duma passed a bill legalizing crypto payments for international trade. The Central Bank of Russia, now targeted by Ukraine’s sanctions, was authorized to oversee an experimental infrastructure allowing approved businesses to use crypto assets for cross-border transactions.

In August 2024, President Vladimir Putin approved crypto mining, allowing firms to mine Bitcoin provided they register with tax authorities and comply with energy consumption regulations.

By December 2024, Finance Minister Anton Siluanov confirmed that domestically mined Bitcoin was being used in foreign trade under a trial setup with the Central Bank.

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Will These Sanctions Be Effective?

It remains uncertain whether Ukraine’s sanctions on Russian crypto firms will be effective.

Crypto transactions, including those of the top Solana meme coins, are borderless and difficult to block unless intermediaries are directly targeted.

To succeed, Ukraine must collaborate globally to pressure non-sanctioned countries to limit dealings with Russian crypto firms. However, Russia’s partners, such as China and the UAE, may continue engaging with these firms.

Additionally, Russia has developed an alternative payment system, the Financial Messaging System (SPFS), and proposed crypto exchanges in major cities like St. Petersburg and Moscow, demonstrating growing resilience to Western sanctions.

Combined with BRICS initiatives to develop an alternative payment currency and system, Russia is increasingly shifting away from the U.S.-dominated financial system, giving it a strategic advantage.

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