Japan sanctions Garantex and expands Russian asset-freeze measures

Japan has expanded its sanctions against Russia by adding the cryptocurrency exchange Garantex to its asset-freeze and transaction-control regime. The move, announced by Japan’s Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Economy, Trade and Industry, aims to disrupt financial activities linked to the war in Ukraine.

By designating Garantex (specifically Garantex Europe OU), Japan is closing regulated financial routes through which the sanctioned exchange could interact with banks, payment providers, and other compliant counterparties. While these measures do not stop transactions on public blockchains, they restrict the ability of designated entities to move assets through the regulated financial perimeter under the Foreign Exchange and Foreign Trade Act.

The broader sanctions package includes 33 organizations and nine individuals connected to Russia. Additionally, the Japanese government targeted 35 vessels associated with the “shadow fleet” used to transport Russian oil in evasion of existing sanctions. These measures are intended to reduce Russian revenue from crude oil exports by disrupting financial flows and capital transactions.