Japan Slams Brakes on Garantex, Targets Shadow Fleet in Sanctions Expansion

The Japanese government has expanded its sanctions against Russia by adding cryptocurrency exchange Garantex to a new set of measures aimed at disrupting Russian financial activity tied to the war in Ukraine.

The update was announced in a joint statement released Friday by Japan's Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Economy, Trade and Industry. The package includes 33 organizations and nine individuals connected to Russia, with the changes focused on an asset-freeze framework designed to restrict payments and other capital transactions involving designated parties.

The government also targeted 35 vessels associated with the so-called 'shadow fleet', which is used to move Russian oil while evading existing sanctions. Japan's restrictions are intended to reduce Russia's revenue from crude oil exports by disrupting the financial flows around sanctioned trade.