The United Kingdom has unveiled new sanctions against Russian financial institutions that use crypto and offshore payment systems to circumvent sanctions imposed after the invasion of Ukraine.
The measures target the Kremlin-backed A7 network, a ruble-based currency system, and a group of exchanges and companies that pay through Kyrgyzstan and Georgia.
It was announced by Foreign Secretary Yvette Cooper, the package it covers 18 new titles that focus on what London describes as the backbone of Russia of illegal financial means.
Officials say the list also includes a Kyrgyz bank believed to be running A7, the world’s largest cryptocurrency exchange. sent more more than 1.5 billion dollars to organizations close to the Kremlin, and three Georgian companies that run Russian trading platforms.
A7 network it has come out as a central component of Russia’s attempt to overcome the challenges facing the West in its war economy. Investigations by independent investigators describe A7 as a formal cross-border platform that uses the ruble token, known as A7A5, and links to Promsvyazbank, a state-owned lender that supports Russia’s defense sector.
According to the UK government, A7 is said to have moved more than £90 billion in the past year, an amount that officials say is close to half of Russia’s annual spending.
Special media investigations have found that wallets connected to A7 and organizations play a major role in transferring the borders of official oligarchs and businesses connected to the government.
The crash comes just as Russia predicts show a weak view of growth under restrictions. This month the Ministry of Finance cut its forecast for growth in 2026 to 0.4 percent from 1.3 percent and reduced the estimate for 2027 from 2.8 percent to 1.4 percent, an acknowledgment that increased military spending and trade margins are weighing heavily.
Crypto is changing banking links in Russia
Western officials and crypto-asset firms have announced that crypto is a key tool in Russia’s efforts to replace severed banking links. Investigations into platforms such as A7A5 and exchanges using Russian users have tracked billions of dollars in stablecoins and tokens bypassing traditional bank checks, mostly in Central Asia and the Caucasus.
Cooper imposed the new sanctions as part of a broader strategy to drive down Moscow’s armed forces and shut down safe havens for attacks. He added that the UK would continue to work with its allies to uncover, disrupt and destroy the movement of money and assets to the Russian military.
Since the full invasion in 2022, Britain has said to be allowed more than 3,300 people, companies and vessels connected to the Kremlin, from banks and energy giants to defense agencies. The government estimates that sanctions imposed by other countries have cost Russia $450 billion, a loss equivalent to the two-year war on Ukraine.
