The European Union has sanctioned the Russian crypto exchange Garantex over its associations with sanctioned Russian banks. Despite longstanding sanctions, the exchange continues to operate successfully.
Sanctions Against Garantex and Exchange History
On February 24, the European Council introduced the 16th sanctions package, including crypto exchange Garantex. The exchange is headquartered in Russia and enables transactions with Russian banks. In 2022, it was blacklisted by the US Treasury's Office of Foreign Assets Control.
Implications and Significance of Sanctions
Analysts believe that the EU sanctions will not significantly impact Garantex operations but highlight the EU's efforts to maintain economic pressure on Russian financial institutions. The exchange remains a trusted platform in Russia due to its liquidity reserves.
Connections with the Russian Government
According to an investigation by Eesti Ekspress and the International Consortium of Investigative Journalists, Garantex has ties with the Russian government. These connections raise concerns as the exchange continues operating under Kremlin oversight.
The EU sanctions against Garantex add to the international pressure on Russian financial structures but require strong international cooperation to fully curb its activities.
