EU Officially Restricts Financial Transactions With Russia: How It Will Hit the Kremlin

The EU has blacklisted Russia over money laundering and terrorist financing risks, tightening bank controls, while Moscow rejects the move and sanctions on Russian gas intensify.

The EU has officially added Russia to the “blacklist” of countries with a high risk of money laundering and terrorist financing.

This was reported by RBC-Ukraine, citing the Official Journal of the EU Council.

The decision came into effect on January 29. It introduces enhanced scrutiny by all EU banks over any financial transactions connected to Russia.

It is known that the European Commission adopted this decision on December 3, 2025. Today, 20 days after its publication, it has entered into force, as neither the European Parliament nor the EU Council raised any objections.

It should be recalled that Russia was previously not included on the FATF “blacklist” — the international body combating money laundering — despite persistent requests from Ukraine. The reason was objections from countries such as China, India, Saudi Arabia, and South Africa, which left Russia off the list.

The European Commission decided to act independently and added Russia to the “blacklist” regardless of the FATF.

Consequences of the decision

The new rules mean that any transactions linked to Russia in European banks will now be subject to thorough scrutiny, and the financial operations of Russian organizations in the EU will be significantly restricted. This is another signal to Moscow that financing the war in Ukraine and ignoring international norms is unacceptable.

As a result, all EU financial institutions are now required to strengthen the monitoring of transactions connected to Russia, and banks that have not yet implemented additional measures against Russia must do so.

Why Russia ended up on the “blacklist”

It should be noted that Russia’s FATF membership was suspended due to its gross violations of the FATF’s core principles. The assessment revealed a number of key shortcomings in Russia, including legislation and policies in the field of financial intelligence, particularly regarding its independence and ability to effectively cooperate with counterparts in other countries.

The EU also identified issues with the transparency of beneficial ownership and the accuracy of available information, as well as with the application of anti-money laundering and counter-terrorism financing rules to crypto assets.

Reaction of Russia

Russian financial authorities stated that the EU’s decision is politicized and lacks concrete evidence of shortcomings in Russia’s anti-money laundering system.

For the EU, however, this is an important step in the financial isolation of Russia and in strengthening sanctions pressure over its aggression against Ukraine.

It should be recalled that today, Ukrainian Foreign Minister Andriy Sybiga highlighted key opportunities for the EU to exert pressure on Russia.

On January 26, 2026, the Council of the European Union formally approved a full ban on the supply of Russian liquefied natural gas, aiming to “cut off” the Kremlin’s financing of the war in Ukraine.