Japan Sanctions Russia, Adds Crypto Exchange Garantex to Asset Freeze List

TLDR:

• Japan added 33 entities and nine individuals, including Garantex, to its Russia asset freeze list on October 2.
• Garantex was sanctioned earlier by the United States and the European Union for alleged sanctions evasion.
• Service and financing restrictions now apply to 35 vessels in Russia’s shadow fleet under a permission system.
• Contracts concluded before October 2, 2026 are exempt if carried out before November 1, 2026.
  

Japan imposes new sanctions on Russia, adding crypto exchange Garantex to its asset freeze list. The government announced the measures on October 2.

They cover 33 entities and nine individuals from the Russian Federation. Japan also introduced service and financing restrictions on 35 vessels in Russia’s shadow fleet.

Garantex had previously faced sanctions from the United States, the European Union, and other jurisdictions. The measures fall under the Foreign Exchange and Foreign Trade Act, and a Cabinet Understanding on asset freezes.

Asset Freeze Targets 33 Entities, Nine Individuals, and Garantex

The Ministry of Foreign Affairs issued a notice on October 2 naming the targeted parties. Garantex appears among the listed entities.

Authorities alleged that the exchange helped Russian entities evade financial sanctions. The listed parties now face restrictions on payments and capital transactions.

The Japanese government explained its reasoning in an official statement. It said it acted “in view of the current international situation over Ukraine.”

The statement added that the goal is “contributing to the international efforts for achieving international peace.” Tokyo also said it acted “in line with the measures taken by other major countries.”

The decision rests on a Cabinet Understanding titled “Asset Freeze for individuals and entities of the Russian Federation and other measures.” Under it, a permission system applies to payments to the listed parties.

The same system covers capital transactions with them. These include deposit contracts, trusts, and money loans. As a result, such dealings require government permission.

Japan also added export bans. Exports to four specific entities in countries other than Russia and Belarus are now prohibited.

Furthermore, Japan banned exports to Russia of items that could enhance Russian industrial capabilities. The Ministry of Foreign Affairs notice lists the four entities.

Shadow Fleet Vessels Face Service and Financing Restrictions

Japan also targeted 35 vessels within Russia’s shadow fleet as part of the new sanctions on Russia. The Ministry of Foreign Affairs notice lists each ship.

A permission system now applies to services specified in a Ministry of Finance notice. These services are those provided to the listed vessels.

Capital transactions involving the vessels also require permission. These include money loans and debt guarantee agreements. The agreements accompany the sale, purchase, lease, or charter of the specific ships. Permission is required before any such agreement proceeds.

The vessel measures apply to obligations and services performed on or after October 2, 2026. However, the government noted an exception for contracts “concluded before October 2, 2026.”

Those contracts must also be carried out before November 1, 2026. Under this exception, the new permission requirements do not apply to them.

Japan imposes new sanctions on Russia through an asset freeze, export bans, and vessel restrictions. Garantex now faces the same payment and capital transaction restrictions as the other listed parties. Meanwhile, the Ministry of Finance notice defines the services covered under the vessel permission system.

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