The EU recently adopted the eighth package of sanctions against Russia over its invasion of Ukraine. The main elements of the package with implications for the finance and banking sectors are the following:
Full ban on crypto-assets
As part of the 8th sanctions package against Russia issued on 6 October, the EU removed a previous threshold that limited crypto payments to European wallets to 10,000 euros. Therefore, the EU fully banned all crypto-asset wallets, accounts, or custody services, regardless of the total value of those crypto-assets. This measure was justified by the need to render all crypto payment services unavailable since despite the limit on crypto payments transactions there were still some small scale transactions.
Russian Banks and Services
The EU disconnected from the SWIFT messaging system Russia's biggest banks such as Sberbank, Credit Bank of Moscow and Russian Agricultural Bank. The EU is also disconnecting the Belarusian Bank for Development and Reconstruction. EU accounting, lobbying, public relations and consultancy companies, as well as the world’s biggest consultancy firms, will not be allowed to provide services to Russian entities as well as to legal persons or bodies established in Russia.
Trusts
The measures on trusts have been further developed. In particular, the deadline for the provision of registered office and management services to the targeted types of trusts has been extended to 5 July 2022. Member states’ competent authorities may authorize the provision of trust services beyond July 2022 for example, in the case of operations strictly necessary for the termination of contracts, provided that such operations were initiated before 11 May 2022. Further exceptions, such as for humanitarian purposes, civil society activities, and the administration of occupational pension schemes, insurance policies or employee share scheme, charities have been laid down in anamended version of the provision.
New Russian and Belarusian Entities Sanctioned
More individuals, entities and companies related to Russia's military-industrial sectors are now facing repercussions such as assets freezing and travel bans. In total, also considering the earlier individual sanctions imposed following the annexation of Crimea in 2014, the EU has sanctioned 98 entities and 1158 individuals.
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