Denmark proposes sanctions on Russia’s cryptocurrency revenues

Denmark has put forward a proposal to include sanctions targeting Russia’s revenues from cryptocurrency transactions as part of the European Union’s upcoming 19th package of restrictive measures.

In addition to the cryptocurrency-focused measures, Denmark is also reportedly advocating for further restrictions on Russia’s income from oil and gas exports. However, the report did not provide specific details regarding the nature or scope of these proposed energy-related sanctions, Caliber.Az reports, citing Russian media.

The proposed measures underscore Denmark’s intent to tighten financial pressure on the Kremlin by targeting alternative revenue streams that may be helping to fund its ongoing war efforts despite existing sanctions.

EU foreign ministers are also expected to deliberate on the potential activation of a previously unused legal instrument that would allow the bloc to restrict exports to non-EU countries assessed to be at high risk of facilitating the circumvention of sanctions. This reflects growing concern within the EU over third-party actors enabling Russia to bypass existing restrictions through indirect trade routes or opaque financial channels.

While no formal decisions are expected during the informal meeting, the discussions are likely to influence the structure and priorities of the next sanctions package. David McAllister, Chair of the European Parliament’s Committee on Foreign Affairs, emphasized that the gathering is intended to set the tone for the EU’s broader security and defense strategy in the coming months.

European Commission President Ursula von der Leyen previously confirmed that the 19th sanctions package would be formally unveiled in early September. The new round of measures is expected to build upon existing efforts to curtail Russia’s access to critical technologies, financial systems, and global markets amid its continued aggression in Ukraine.

By Vafa Guliyeva