The B4Ukraine Coalition welcomes today’s landmark decision by the European Commission to add Russia to the EU’s list of high-risk third countries for money laundering and terrorism financing. This move—long overdue and urgently needed—marks a significant step toward closing the financial channels that enable Russia’s war economy.
This designation follows nearly four years of persistent work by Ukrainian authorities and civil society and its partners, including sustained advocacy by members of our coalition who have consistently documented and exposed the financial crime risks stemming from Russia’s actions. In 2023, many of these same efforts contributed to Russia’s suspension from the Financial Action Task Force—an outcome once considered impossible. Today’s decision is further proof that nothing is impossible when you stand on the right side of history.
We commend the leadership of the Ministry of Finance of Ukraine and the tireless efforts of the members of the B4U coalition, experts and partners across Europe and beyond who have pushed for stronger safeguards against Russian illicit financial flows. Their dedication has been instrumental in securing this result.
Why This Matters
Designating Russia as a high-risk jurisdiction significantly raises the barriers for all Russian entities seeking to access the EU financial system. The decision will require enhanced due diligence, stricter monitoring, and greater scrutiny from European financial institutions. This will:
• Make it substantially harder for Russia and Russian-linked entities to move money through the EU;
• Increase transparency and oversight across sectors vulnerable to sanctions evasion;
• Strengthen the integrity of the EU’s financial system against illicit flows from Russia and its associated entities;
• Further isolate Russia within the global financial architecture.
These measures will also reverberate beyond Europe, as other jurisdictions typically align their frameworks with the EU list, further constricting Russia’s ability to fund its war of aggression.
Next Steps
While today’s decision is a critical milestone, further action is required to ensure effective implementation and close remaining loopholes. The B4Ukraine Coalition urges the EU and its member states to:
- Ensure rigorous application and supervision of enhanced due diligence requirements across all financial institutions.
- Accelerate complementary measures to counter sanctions evasion networks operating through third countries.
- Expand restrictions on Russian state-controlled and Kremlin-aligned entities, particularly in high-risk sectors.
- Increase information-sharing and coordination with Ukraine and international partners to detect and disrupt illicit financial flows.
- Advance work on freezing and repurposing Russian sovereign assets for Ukraine’s reconstruction.
Today’s action is a powerful acknowledgment that Russia’s war economy relies on illicit finance—and that the international community can and must act to cut these channels off. B4Ukraine remains committed to supporting Ukraine and ensuring that governments and businesses take every possible step to end Russia’s ability to finance its aggression.
Nothing is impossible when we stand together for justice, accountability, and Ukraine’s victory.