Lithuania Freezes Accounts of Russian and Belarusian Nationals Amid 2025 EU Sanctions

In April 2025, Lithuanian online bank Paysera notified Russian and Belarusian clients of potential account closures, aligning with the European Union's 16th sanctions package against Russia and Belarus. The EU regulation mandates financial institutions to limit services to individuals from these countries, particularly those without EU or Swiss residency.​
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Clients were given 14 days to provide documentation verifying their legal status. The Bank of Lithuania confirmed receiving Paysera's request and endorsed additional measures to scrutinize clients from sanctioned nations. These measures include verifying the basis for their stay in Lithuania, income sources, and the purpose of account openings. The central bank emphasized that these steps are in line with European practices to mitigate risks associated with sanction circumvention.​

The EU's 16th sanctions package, effective since February 2025, encompasses a broad range of restrictions:​

Bans on importing Russian aluminum and related semi-finished products.

Disconnection of 13 Russian banks from the SWIFT system.

Prohibition of cloud services to Russian companies.

Export restrictions on dual-use technologies.

Sanctions targeting over 140 individuals and entities linked to Russia's defense, energy, and financial sectors.​
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These measures build upon sanctions initiated in 2022, with the EU Council highlighting the financial sector as a primary target to exert economic pressure on Russia.​

Other financial institutions have implemented similar restrictions. In 2022, fintech company Revolut limited transactions involving clients from Russia and Belarus. Banks in Cyprus, the UAE, Switzerland, Turkey, and other countries have also imposed account limitations. In Italy, CiviBank froze accounts of Russian clients in January 2025, citing EU-wide restrictions. Earlier, Intesa Sanpaolo, Italy's largest bank, curtailed euro transfers from Russia, affecting small and medium-sized enterprises.​

Beyond Europe, the U.S. has sanctioned Gazprombank and over 50 other financial institutions. In Kazakhstan, March 2025 saw the freezing of approximately 2,000 Russian accounts, primarily in Kaspi Bank, due to investigations into illegal transactions and the absence of proper residency documentation.​

Given the evolving sanctions landscape, Russian and Belarusian nationals residing in the EU are advised to:​

Regularly update their legal residency documentation with financial institutions.

Maintain alternative accounts in jurisdictions with less stringent sanctions enforcement.

Stay informed about changes in sanctions and promptly respond to bank communications.​

Anticipated future measures may see other EU banks, particularly in the Baltic states, Poland, and the Czech Republic, adopting stricter compliance protocols.​