While Russia remains defiant and unrepentant towards its aggressive military activities in Ukraine, the EU has strongly frowned against this act. Russia’s decision to invade Ukraine has been greeted with different sanctions from countries across the globe. Bans against Russian President, Vladimir Putin’s foreign assets, Embargoes on Russian Oligarchs, and the country’s financial system have surfaced. These bans are sternly aimed at pushing Russia to stop the ongoing Invasion.
However, the heat of the sanctions continues to pile up on Russia and Vladimir Putin. Meanwhile, the country is doing everything within its reach to minimize the effect of the sanctions on its economy. While notable bodies, countries, and organizations terminated their deal with Russia Based Gazprom in protest against the invasion. The Russian natural gas company signed a 30 years deal to supply natural gas to China. Gazprom is the only firm in Russia that exports natural gas to other countries. The deal will supply over 10 billion Cubic meters of gas to China annually.
Additionally, another attempt of Russia and Putin to dodge the West sanction manifested in another deal with China. Local banks in Russia were expelled from international payment platforms, giant platforms like Visa and Mastercard also protested against Russia. The development compelled Russia to turn to Chinese-owned UnionPay to minimize the effects of the sanctions.
Thus, the tendency of Russia to always maneuver its way around these sanctions has birthed heavy concerns for the EU. There are increasing speculations that Russia aims to use Crypto assets to dodge the sanctions. These speculations have dragged the EU towards looking at Cryptocurrency to stop Russia from utilizing it to drive its economy to safety.
How EU is monitoring the situation
The European Union is accessing the possibility of stopping Russia from utilizing Cryptocurrency to dodge its sanctions. Also, the EU Is considering a possible option of inflicting heavy economical damages on Russia with Cryptocurrency. For the Union, Cryptocurrency is vital as a prominent defense and attack mechanism against the Russian economy.
A prominent EU official recently admits that Crypto Assets are possible options for Russia to sabotage sanctions imposed on it. The official added that the European Union is monitoring news reports and also have access to information about Crypto Assets. The official furthered that the rise in the value of some Crypto Assets is likely to be a reflection of Russia’s attempt to sabotage EU sanctions.
The Prime Minister of France, Brune Le Maire also opined that the league of the twenty-seven nations is working to soften Russia’s resolve. He revealed that so far, the sanctions are productive towards destabilizing Russia’s Economy. He sighted how it had weakened the strength of the Russian Central Bank to shield the Ruble. The EU economic regulator, Paolo Gentiloni also explain that the Union has noticed a surge in the use of Cryptocurrency. He suggested that the surge is likely to be an indication of How Russia is using the industry to sabotage sanctions.
The discussion took a different dimension when the U.S and U.K parliamentarians raised the alarm that Crypto-assets can still connect Russia to the rest of the world financially. Therefore, recommendations to legalize Crypto spurred before the President of the European Central Bank, Christine Lagarde. The proposal includes a clause to compel crypto trading platforms to ban Russian users as well. The clause is to ensure that Russians are unable to engage in international transactions.
Possible Development
The call for a Cryptocurrency ban on Russia is a controversial buzz, and many Crypto trading platforms are reluctant towards it. On a fair note, the call is contrary to the Libertarian Philosophy of Cryptocurrency. Nevertheless, Japan and Singapore have compelled Banks in their domain to ban Russian Users. Switzerland is likely to follow suit, while Binance And Coinbase are reluctant to ban Russian accounts on their platforms.
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