ECB’s Lagarde ‘concerned’ about crypto use to dodge Russia sanctions

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Updated 22 March 2022
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ECB’s Lagarde ‘concerned’ about crypto use to dodge Russia sanctions

FRANKFURT: European Central Bank chief Christine Lagarde spoke of her concern Tuesday that cryptocurrencies were being used as a loophole to avoid sanctions against Russia over the war in Ukraine.

Lagarde said she was “most concerned” about the high volume of rubles being converted into crypto assets since Russia was hit with a barrage of financial sanctions over last month's invasion of Ukraine.

Crypto assets are being used “to circumvent the sanctions that have been decided by many countries around the world against Russia and a particular and specific number of players,” Lagarde told an online banking forum.

“Here in Europe, we have taken steps to clearly signal to all those who are exchanging, transacting, offering services in relation to crypto assets that they are being accomplices,” she added.

Western sanctions have included cutting selected Russian banks from the SWIFT messaging system, rendering them isolated from the rest of the world.

Measures that prohibit transactions with Russia’s central bank have also plunged the country’s economy into turmoil.

As a result, Russians have flocked to cryptocurrencies like bitcoin and tether that operate on a decentralized network, outside the official banking system.

This, in turn, prompted the EU to issue a statement earlier this month stressing that crypto assets were also included in the sanctions.

Lagarde and other central bankers around the world have long been critical of unregulated cryptocurrencies, which are highly volatile and could leave investors exposed to heavy losses.

To counter the rise of crypto and respond to the growing shift towards cashless payments, the ECB is studying the creation of a “digital euro.”


Oman inflation at 1.6%, latest figures show

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Oman inflation at 1.6%, latest figures show

RIYADH: Oman’s consumer price index rose by 1.6 percent in December compared with the same month a year earlier, reflecting moderate inflationary pressures at year’s end.

Average inflation for the January–December 2025 period increased by 1 percent, according to official data.

Figures released by the National Center for Statistics and Information showed that miscellaneous personal goods and services recorded the sharpest price increase, rising by 10 percent year on year. 

This was followed by transport at 2.8 percent, restaurants and hotels at 2.6 percent, and furniture, household equipment and routine maintenance at 2.4 percent, as well as education at 2.2 percent. 

Food and non-alcoholic beverages prices increased by 1.1 percent, while clothing and footwear rose by 0.2 percent and health by 0.1 percent. In contrast, prices in the culture and recreation group declined by 0.1 percent. 

Housing, water, electricity, gas and other fuels, as well as tobacco and communications, remained unchanged over the period. 

Within the food and non-alcoholic beverages category, December prices compared with the same month of 2024 showed notable increases in fish and seafood at 6 percent and fruits at 4 percent. 

Sugar, jam, honey and confectionery rose by 3.5 percent, milk, cheese and eggs by 2.1 percent, and non-alcoholic beverages by 0.9 percent.

Meat prices increased by 0.8 percent, bread and cereals, oils and fats by 0.7 percent, and other unclassified food products by 0.4 percent, while vegetable prices fell by 5.8 percent. 

Regionally, Al Dhahirah governorate recorded the highest inflation rate at 2.5 percent by the end of December compared with a year earlier. 

Inflation also rose by 2.1 percent in Al Dakhiliyah, 1.7 percent in Muscat and Al Buraimi, and 1.5 percent in South Al Batinah. 

South Al Sharqiyah and Musandam each posted increases of 1.1 percent, while North Al Sharqiyah and North Al Batinah rose by 0.9 percent. Al Wusta and Dhofar recorded inflation of 0.8 percent. 

The report highlights the relative importance of expenditure groups within the consumer price index basket, underscoring why movements in certain categories have a greater impact on overall inflation.

Housing, water, electricity, gas and other fuels carry the largest weight at 31.7, followed by food and non-alcoholic beverages at 20.6 and transport at 14.5.

Together, these three groups account for more than two-thirds of the CPI basket, meaning price stability in housing and utilities can significantly moderate headline inflation even when sharper increases are recorded in smaller-weight categories such as miscellaneous goods and services. 

The analysis also notes that around 56,640 individual price quotations were collected from 3,907 sources across the Sultanate during the reference period. 

In addition, rental data were gathered from a dedicated sample of 1,509 rented housing units, providing a detailed and representative measure of housing costs, which remain the most heavily weighted component of the inflation basket.