The UK has intensified its crackdown on Russia’s efforts to evade Western sanctions by targeting cryptocurrency exchanges and financial institutions suspected of assisting Moscow. These new sanctions, announced by the UK government, focus on a network connected to a ruble-backed stablecoin called A7A5, which moved approximately $9.3 billion in just four months. This digital currency was specifically designed to facilitate Russian financial transactions outside the reach of traditional banking channels, undermining international sanctions regimes.

Central to the UK’s actions are two Kyrgyz-based crypto exchanges, Grinex and Meer, as well as the Capital Bank of Central Asia and its director, Kantemir Chalbayev. Authorities allege these platforms and individuals played key roles in processing and financing goods for Russia’s military. Additional entities involved in the infrastructure of the A7A5 stablecoin network, such as Altair Holding, CJSC Tengricoin, Old Vector, and the token’s director, Leonid Shumakov, have also been targeted.

This move comes as part of a broader campaign by the UK and its allies to prevent Russia from circumventing sanctions imposed in response to its invasion of Ukraine. The UK now has more than 2,700 sanctions against Russia, and these latest measures follow similar actions by the United States, highlighting a coordinated international effort. Officials emphasize that these steps are intended not only to pressure the Russian government but also to disrupt the covert financial channels used to sustain its military activities.

Western governments are paying closer attention to digital financial tools, viewing crypto networks as increasingly sophisticated vehicles for sanctions evasion. The UK’s renewed focus reflects concerns that cryptocurrencies and stablecoins could further undermine the effectiveness of global sanctions unless international cooperation remains strong. In response, the UK and its partners remain committed to closing regulatory gaps and tightening controls on all financial flows linked to Russia’s war efforts.