Russia’s financial rescue plan has collapsed, and the EU wants harsh sanctions on cryptocurrencies

The European Union wants to impose further sanctions on Russia for the war in Ukraine. After cutting of selected banks from the SWIFT payment system and other economic constraints are now the cryptocurrency. So far, these have been the way in which Russia could mitigate the effects of sanctions.

There is financial chaos in Russia

„In particular, we will take measures concerning cryptocurrencies, which must not be used to circumvent the financial sanctions approved by the European Union., “Said French Finance Minister Bruno Le Maire after the special online meeting of the EU Economic and Financial Affairs Council. According to him, the adopted financial sanctions against Russia are already extremely effective and have caused the “disorganization” of the Russian financial system.

„We will increase the pressure until the Russian leadership changes direction, “Said German Finance Minister Christian Lindner. It therefore considers that measures need to be taken to prevent persons and institutions on the sanctions list from using unregulated cryptocurrencies to circumvent sanctions.

Le Maire added that the announced aid to Ukraine in the amount of 600 million euros could be paid on March 15. In total, the EU wants to provide the Ukrainian government with 1.2 billion euros. In particular, this financial assistance should help ensure the economic and economic stability of Ukraine.

More will be added

The European Union is not the only one that plans to control cryptocurrencies in Russia. The United States is joining the initiative. According to the head of the US Federal Reserve Jerome Powell, Russia’s attack on Ukraine showed the need to regulate cryptocurrencies. She should avoid it kryptomeny used as a tool to circumvent sanctions.

„The Russian invasion underlined the need for congressional action on digital finance, including cryptocurrencies“Powell told the House of Representatives’ Financial Services Committee on Wednesday.

The problem is that Russia and those on the sanctions list can use it kryptomenyto avoid sanctions. Powell added in arguments to tighten up the regulation that kryptomeny it can also be used by terrorists and other criminals.

Slovakia also supports tough measures

The call for cryptocurrency regulation in Russia is part of the harsh sanctions imposed on the aggressor by the EU together with other countries, led by the USA. The United States is currently considering banning oil imports from Russia, and is setting up a special task force to monitor the circumvention of restrictions by Russian oligarchs.

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Slovakia also supports the introduction of the toughest possible sanctions against Russia. The Ministry of Finance of the Slovak Republic also announced its intention to withdraw from the International Investment Bank and the International Bank for Economic Cooperation, whose shareholders are the Russian Federation. Slovakia has declared its position together with Poland, the Czech Republic, Romania and Bulgaria.

At the meeting, the Minister of Finance of the Slovak Republic, Igor Matovič, stated that the current economic sanctions have a minimal impact on the Slovak economy so far. “We are a small country directly adjacent to Ukraine. We are dependent on Russia for energy and large numbers of refugees are flowing to us. Nevertheless, we support all available sanctions and measures“He added.