Japan has added Garantex to its list of sanctions against Russia over the Ukraine war. The move follows a joint statement from the country’s Ministry of Foreign Affairs, Ministry of Finance and Ministry of Economy, Trade and Industry, released on Friday.
Garantex is a cryptocurrency exchange that was previously sanctioned by the US, the EU and other jurisdictions for helping Russian entities evade financial restrictions. Japan’s sanction targets the exchange under an asset freeze list, restricting payments and capital transactions with the targeted party.
The new measures also target 33 organizations and nine individuals linked to Russia, along with 35 vessels identified as part of the “shadow fleet” carrying Russian oil. Services restricted include repairs and insurance to cover the designated vessels. Japan aims to help reduce Russia’s earnings from crude oil exports through these sanctions.
Sanctions List Breakdown
The joint statement from Japan’s three ministries announced the additions to its asset-freeze list. Garantex joins the list alongside the 33 organizations, nine individuals and 35 vessels.
The asset freeze applies to payments and capital transactions with the targeted party. That means banks and payment processors in Japan must stop handling transactions involving the sanctioned entities.
Garantex’s Previous Sanctions
Cointelegraph reported in August 2025 that Garantex may already have had a contingency plan allowing it to skirt the impact of US actions, according to blockchain intelligence firm TRM Labs. The report suggested the exchange had prepared for the consequences of being placed on a sanctions list.
The US Treasury’s Office of Foreign Assets Control sanctioned Garantex a second time, along with its successor, Grinex. TRM Labs said in a report that sanctions against such entities may be ineffective because they “appear to prepare contingency plans well in advance of anticipated enforcement measures,” allowing them to quickly migrate clients, infrastructure and funds to successor platforms.
“Sanctions against such entities may be ineffective because they appear to prepare contingency plans well in advance of anticipated enforcement measures.”
The report raises questions about whether sanctions can effectively disrupt operations when targets plan around them from the start.
The Shadow Fleet Targets
The 35 vessels identified as part of the shadow fleet are central to Japan’s stated aim of reducing Russia’s crude oil revenue. By restricting repairs and insurance services for these ships, Japan hopes to raise the cost of operating the fleet.
Restricting repairs means ship owners face higher maintenance costs and potential downtime. Restricting insurance coverage leaves the vessels exposed to financial losses if they suffer damage at sea.
The combined effect is meant to make the shadow fleet less profitable to operate, which would reduce the incentive for shipping companies to carry Russian oil.
Reasons Behind Japan’s Move
Japan’s move comes amid ongoing conflict in Ukraine. The country has aligned its sanctions with those of the US and the EU, which previously sanctioned Garantex.
The move reflects Japan’s concern about the flow of Russian wealth through digital channels. Cryptocurrency exchanges have become a focus for sanctions efforts in recent years, as they offer ways for sanctioned entities to move funds without passing through traditional banking systems.
What Happens Next
The immediate effect is that Japanese financial institutions must now screen transactions involving Garantex, Grinex and the other listed entities.
The broader question is whether the sanctions will actually change Garantex’s behavior. TRM Labs’ report raises questions about whether sanctions can truly disrupt operations when targets prepare for them in advance.
Japan’s stated goal is to reduce Russia’s crude oil earnings. Whether the sanctions achieve that will depend on how effectively Japan and its partners enforce the restrictions.
The Paper’s View
The paper supports the principle of governments working together to apply pressure on sanctioned entities. The war in Ukraine is ongoing, and the international response has included sanctions across multiple fronts.
Garantex’s role in helping Russian entities evade financial restrictions makes it a logical target. The exchange was previously sanctioned by the US, the EU and other jurisdictions, and Japan’s action brings it into line with those existing measures.
The effectiveness of sanctions is a separate matter. TRM Labs’ report raises questions about whether sanctions can truly disrupt operations when targets prepare for them in advance.
That does not change the judgment on the action itself. Japan is acting within its rights to join the international effort against Russia, and the paper supports that effort.
The paper’s position is straightforward: governments have a right to apply pressure on sanctioned entities, and coordinated action is more effective than acting alone. Japan’s move fits that framework, even if the outcome is uncertain.
Where the paper stands
The paper backs Japan’s decision to add Garantex to its sanctions list as a sensible step toward keeping financial channels clear of evasion, while continuing to warn against foreign entanglements that could close off those channels entirely. The warning comes with good reason: TRM Labs reports suggest sanctions may be ineffective against targets that prepare for them in advance.
The paper’s scepticism about foreign entanglements applies here too. It wants financial channels kept open for trade, diplomacy and compromise, not closed by overreach.
What matters now is how Japan enforces these restrictions, and how effectively they actually change Garantex’s behavior. The reader should watch whether the sanctions bite or merely confirm that targets were ready for them all along.
Source material: “Japan adds Garantex to list of Russia sanctions over Ukraine war,” Cointelegraph.
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