The European Union has taken a significant step in its efforts to curb financial networks supporting Moscow by imposing sanctions on Russian cryptocurrency exchange Garantex. This move comes as part of a new round of penalties aimed at targeting entities that are directly supporting the Russian war effort.

Garantex, which was already blacklisted by the U.S. Treasury’s Office of Foreign Assets Control in 2022, has now been added to the EU’s sanctions list. The Council of the EU announced this decision in a press release on February 24, along with the inclusion of 48 individuals and 35 entities that are allegedly aiding Russia.

This marks the first time that the EU has decided to sanction a cryptocurrency exchange based in Russia. The Council highlighted that Garantex is closely associated with EU-sanctioned Russian banks, making it a key target for these sanctions.

In addition to Garantex, the EU’s sanctions package includes penalties on businesses that are helping Russia bypass trade restrictions, three firms involved in moving Russian crude oil, and a Chinese satellite imagery provider accused of aiding the Russian military. News outlets accused of spreading Kremlin propaganda were also among the targets of these sanctions.

Overall, the European Union has now sanctioned over 2,400 individuals and entities with ties to Russia. Officials have indicated that they are prepared to impose further sanctions if necessary to address the ongoing situation.

Garantex was previously sanctioned by OFAC in April 2022 for its involvement in facilitating transactions associated with illicit actors and darknet markets, including funds from the Russian Ransomware-as-a-Service gang Conti and the now-defunct Hydra darknet marketplace.

This latest move by the EU underscores the growing importance of cryptocurrency exchanges in the global financial landscape and the need for regulatory bodies to monitor and address potential risks associated with these platforms. The sanctions on Garantex serve as a warning to other crypto exchanges that may be involved in activities that run counter to international norms and regulations.