EU Imposes More Sanctions Against Russia - Including Crypto Sanctions!

10/6/2022, 04:59 PM
EU Imposes More Sanctions Against Russia - Including Crypto Sanctions!
The European Union (EU) has imposed a new wave of sanctions on Russia over its invasion of Ukraine, according to an Oct. 6 press statement. This is the eighth set of measures imposed by the EU in order to cut Russia’s economic growth and military success.

The sanctions are designed to weaken Russia's industrial capacity to continue its war in Ukraine. They extend to the scope of services that can no longer be provided to the government of Russia or its citizens within the country. These services include IT consultancy, legal advisory, architecture, and engineering services.

The Commission welcomes the Council's adoption of an eighth package of hard-hitting sanctions against Russia for its aggression against Ukraine. This package – which has been closely coordinated with our international partners – responds to Russia's continued escalation and illegal war against Ukraine, including by illegally annexing Ukrainian territory based on sham “referenda”, mobilising additional troops, and issuing open nuclear threats.

The sanctions also place €7 billion in import restrictions on Russian products like vehicles, steel, ceramics, etc. Also, it was revealed that the G7 agreement on Russian oil exports would be implemented starting Oct. 6.

According to the commission, its previous sanctions against the Putin-led country had proven effective. The sanctions have damaged Russia’s ability to manufacture new weapons and repair existing ones and hindered its material transportation.

Several reports revealed that the Russian authorities are increasingly leaning towards using crypto for international payments. Russia’s Prime Minister Mikhail Mishustin had stated that the country’s financial system might have to adjust to the new economic reality.

Meanwhile, crypto use remains hazy in Russia. President Putin signed a law on July 14 that banned using cryptocurrencies as a local means of payment. Apart from that, the country blocked global crypto exchange company OKX on Oct. 4 without giving any reason.

By using crypto assets like bitcoin, Russia can bypass economic sanctions by avoiding traditional financial systems. By using bitcoin, Russia can trade with any country without having to go through banks or other financial institutions. This allows Russia to trade with countries that may have sanctions against them.

There are a few risks associated with using bitcoin to bypass economic sanctions. First, bitcoin is a volatile currency and its value can fluctuate rapidly. This means that Russia could lose a lot of money if the value of bitcoin decreases. Second, bitcoin is not yet widely accepted as a currency, so it may be difficult to find places to spend it. Finally, there is a risk that the Russian government could crack down on bitcoin use, which would make it even more difficult to use bitcoin to bypass sanctions.

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