Ukraine welcomes the decision of the European Commission to include the russian federation in the high-risk jurisdiction for money laundering and terrorist financing

The European Commission has adopted a Delegated Regulation that, for the first time, officially designates the russian federation as a third country at high risk due to significant strategic deficiencies in its anti-money laundering and counter-terrorist financing (AML/CFT) system. The regulation will enter into force after the completion of the review period by the European Parliament and the EU Council.

This decision is crucial for protecting the EU’s financial system and global financial security. It will help counter russian threats, including:

• money laundering;
• terrorist financing;
• evasion of international sanctions;
• the use of global finance to support aggression against Ukraine and other criminal activities.

“This historic decision by the European Commission is an important step toward strengthening the resilience and security of the global financial system against the risks and threats posed by the aggressor state. I am grateful to the European Commission for completing the assessment based on the available body of evidence and initiating russia’s listing without lengthy coordination stages. The Ministry of Finance of Ukraine insisted on the application of this accelerated procedure, consistently arguing for the urgent need to include russia in the EU list of third countries,” emphasized Minister of Finance of Ukraine Sergii Marchenko.

Since 2022, the Ministry of Finance has taken systematic steps to ensure the adoption of this decision, in particular:

• held important consultations and communications with the European Commission, including within the framework of the implementation of Delegated Regulation (EU) 2025/1393;
• organized and conducted a series of meetings and engagements with competent authorities of EU Member States and other international partners;
• together with the Ministry of Foreign Affairs and Ukrainian diplomatic missions in EU Member States, provided targeted diplomatic support for this matter (partners were provided with a number of comprehensive analytical materials and evidence of russia’s systemic AML/CFT deficiencies).

Importance of the decision

In accordance with the EU’s 4th Anti-Money Laundering Directive, the inclusion of the russian federation in the list of high-risk jurisdictions obliges EU financial entities to apply enhanced due-diligence measures when dealing with russian counterparties. This will significantly complicate russia’s ability to conduct illicit financial operations through European markets and will help block channels used to circumvent sanctions and finance aggression.

The Ministry of Finance will continue its engagement with European and international partners regarding further measures.