New Package to Prevent Sanctions Circumvention
The European Union (EU) has recently implemented a twelfth package of economic and individual sanctions against Russia, aimed at limiting the circumvention of crypto-related service provision. As part of these measures, Russian nationals are now prohibited from owning or controlling crypto service providers. The EU believes that the previous sanctions have been successful in impacting the Russian economy, with evidence of the ruble depreciating, higher interest rates, and stricter capital controls. However, there are concerns that Russia may be finding ways to bypass the sanctions, leading to the introduction of this new package.
Blockchain to Track Diamonds
The EU’s latest package of restrictive measures also targets the trade of Russian diamonds. From January 1, 2024, diamonds entering the EU market will need to be traced “from the mine to the finger” using blockchain technology. This traceability system involves registering digital representations of diamonds in their rough state and issuing certificates of origin. The identifying information and certificates will then be recorded on a blockchain ledger. This move aims to create transparency in the diamond trade and prevent the entry of diamonds from Russia into the G7 market.
Hot Take: EU Implements New Sanctions Aimed at Russian Nationals and Diamond Trade
The European Union has adopted a new package of economic and individual sanctions targeting Russia. This package includes a ban on Russian nationals owning or controlling crypto service providers. The EU hopes to prevent the circumvention of existing sanctions related to cryptocurrency services. The EU has also implemented measures to trace diamonds, requiring that they be tracked using blockchain technology from the mine to the point of sale. By doing so, the EU aims to enhance transparency in the diamond trade and prevent Russian diamonds from entering the G7 market. These new sanctions are part of the EU’s ongoing efforts to maintain its sanctions policy and achieve a just and lasting peace.
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