Several EU member states are demanding exceptions to the bloc’s sweeping crypto sanctions against Russia, according to people familiar with the talks. The push for carve-outs threatens to unravel what officials had billed as the EU’s most aggressive crackdown on digital assets targeting Moscow.
What the exceptions would cover
The demands focus on specific use cases — cross-border payments for energy imports, remittances to family members still in Russia, and certain corporate treasury operations. One diplomat described the requests as “pragmatic,” arguing that a total ban on crypto transactions with Russian entities would hurt European businesses more than it would hurt the Kremlin. Another official warned that too many exceptions would leave a gaping loophole.
The EU’s current sanctions package, adopted in late 2025, was the first to explicitly target crypto wallets and exchanges linked to Russian oligarchs and state-owned enterprises. It also required all EU-based crypto service providers to block transactions above a certain threshold to Russian addresses. The new demands come as the bloc prepares to renew the sanctions regime in September — a process that requires unanimous approval from all 27 member states.
Who’s pushing and who’s pushing back
Hungary and Slovakia have been the most vocal advocates for carve-outs, citing their continued reliance on Russian energy. Several Baltic states, along with Poland, are resisting any dilution of the measures. The European Commission has so far declined to comment on the internal negotiations, but a draft compromise circulating among member states would allow limited exceptions for humanitarian aid and energy payments — provided they are processed through licensed EU entities that report all transactions to national authorities.
What happens next
EU ambassadors are scheduled to meet again on July 28 to hash out the final language. If the carve-outs are approved, the revised sanctions will take effect on September 1. If not, the entire package could stall — leaving the bloc’s crypto sanctions regime in limbo just as the war in Ukraine enters its third year.
