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Two major cryptocurrency exchanges, OKX and ByBit, have removed Russian banks that are under international financial sanctions from their list of P2P transactions. The banks in question are Tinkoff Bank and Sberbank.
According to Russian media, local users can no longer use these banks for P2P transactions on these platforms.
Binance has also removed “yellow” and “green” payment options from its P2P service after being criticized for allowing traders to use peer-to-peer crypto exchanges to get around sanctions against Russian banks.
What are the international financial sanctions against Russia
International sanctions have been imposed against Russia and Crimea during the Russo-Ukrainian War by a large number of countries, including the United States, Canada, the European Union, and international organizations following the Russian annexation of Crimea, which began in late February 2014.
The sanctions were imposed against individuals, businesses, and officials from Russia and Ukraine. Western countries and others began imposing limited sanctions on Russia when it recognized the independence of self-declared Donbass republics.
With the commencement of attacks on 24 February 2022, a large number of other countries began applying sanctions with the aim of devastating the Russian economy.
The sanctions were wide-ranging, targeting individuals, banks, businesses, monetary exchanges, bank transfers, exports, and imports. The United States and its allies have imposed similar restrictions on Russian financial institutions and international capital markets.
What is the purpose of the sanctions against Russia
The purpose of the sanctions against Russia is to achieve several objectives, which may vary depending on the country or organization imposing the sanctions. Here are some of the main purposes of the sanctions:
- Weakening Russia’s economy: The sanctions aim to put economic pressure on Russia by restricting its access to critical technologies, markets, and financial resources. This is done to weaken Russia’s economic base and reduce its ability to sustain military operations.
- Curtailing Russia’s ability to wage war: The sanctions are designed to significantly limit Russia’s capacity to engage in military activities, particularly in conflicts such as the Russo-Ukrainian War. By depriving Russia of resources and technologies, the aim is to hinder its military capabilities and deter further aggression.
- Punishing Russia for its actions: The sanctions serve as a form of punishment for Russia’s actions, such as the annexation of Crimea and the invasion of Ukraine. They are meant to hold Russia accountable for its violations of international law and deter future aggressive behavior.
- Encouraging a change in behavior: The sanctions are also intended to incentivize Russia to change its behavior and comply with international norms and agreements. By imposing economic and diplomatic consequences, the hope is that Russia will reconsider its actions and engage in peaceful and cooperative behavior.
- Sending a message to other countries: The sanctions against Russia also serve as a signal to other countries that similar actions will not be tolerated. They demonstrate a united front by the international community against aggression and violations of international law, serving as a deterrent to other potential aggressors.