Japan has expanded its sanctions on Russia, placing the cryptocurrency exchange Garantex and 33 Russian entities on its asset freeze list. The new measures, announced on October 2, also target nine individuals and introduce restrictions on 35 ships reportedly used in Russia’s so-called shadow fleet.
Garantex and New Sanction Targets
The Ministry of Foreign Affairs released the names of the sanctioned entities and individuals, listing Garantex among those subject to the new restrictions. Garantex, a crypto exchange previously sanctioned by the United States and the European Union, is accused of assisting Russian parties in bypassing international financial sanctions.
These steps fall under Japan’s Foreign Exchange and Foreign Trade Act, reinforced by a Cabinet Understanding focused on freezing assets of designated individuals and organizations connected to the Russian Federation.
Japan’s government stated that these measures respond to the ongoing situation in Ukraine and align with actions taken by other major economies. The aim is to further international efforts to restore peace.
The Ministry of Foreign Affairs emphasized that the asset freeze and related restrictions are intended to support global peace and are coordinated with other countries’ sanctions regimes.
As a result of the expanded sanctions, all payments and capital transactions with the listed entities and individuals, including Garantex, now require official government permission. This includes transfers of funds, trusts, loans, and other financial activities.
In addition, Japan has introduced new export bans affecting select Russian-associated entities outside Russia and Belarus. Exports of products that could aid Russian industrial operations are also prohibited targeting specifically named organizations.
Mini dictionary: Garantex – A cryptocurrency exchange originally registered in Estonia, later operating predominantly in Russia, which has been previously sanctioned by the US and EU for alleged involvement in sanctions evasion schemes.
Service and Financing Restrictions for Russia’s Shadow Fleet
Alongside the asset freezes, Japan is imposing restrictions on 35 ships identified as part of Russia’s shadow fleet. These vessels, whose details are specified in the government notice, now face limits on both services and financial support under a formal permission system.
Services involving these vessels require official approval, and capital-related transactions—such as loans, debt guarantees, or agreements for purchase, sale, lease, or charter—must also be authorized by Japanese authorities in advance.
Japan clarified that only contracts finalized before October 2, 2026, and completed before November 1, 2026, are exempt from the new permission requirements.
These restrictions are part of a broader strategy to curb Russia’s ability to use indirectly operated vessels for international trade and financing, particularly in sectors affected by sanctions such as energy and shipping.
| Sanction Targets | Restriction Type | Date of Announcement |
|---|---|---|
| 33 Entities & 9 Individuals (including Garantex) | Asset freeze, payment and capital transaction restrictions | October 2 |
| 35 Vessels (shadow fleet) | Service and financing permission system | October 2 |
| 4 Entities (outside Russia and Belarus) | Export ban | October 2 |
Japan’s actions mirror measures taken by other G7 members and are intended to tighten the enforcement of sanctions following Russia’s invasion of Ukraine. The Ministry of Finance and Ministry of Foreign Affairs jointly defined the scope of the new rules, aiming to close loopholes exploited by sanctioned actors.
