21-8-2025 – The United Kingdom has imposed sanctions on Kyrgyz cryptocurrency networks and financial entities accused of helping Russia bypass Western sanctions, targeting the A7A5 rouble-pegged stablecoin and related infrastructure. The measures, first reported by Reuters, aim to disrupt Russia’s financial channels amid its ongoing war in Ukraine.
The sanctions target five organizations, including Kyrgyzstan’s Capital Bank, its director Kantemir Chalbayev, and crypto exchanges Grinex and Meer, which support the A7A5 token that moved $9.3 billion in four months. The UK Foreign Office stated that these networks enable Russia to fund military goods through opaque financial systems, a tactic to evade existing sanctions.
Three individuals, including A7A5’s director Leoniid Shumakov, were also sanctioned for their roles in supporting Russia’s financial infrastructure, including ties to the state-owned Promsvyazbank. The move follows U.S. sanctions on similar Kyrgyz entities and aligns with discussions in Washington involving U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and UK Prime Minister Keir Starmer.
Kyrgyzstan’s government has appealed to Starmer and Trump, arguing the sanctions unfairly target its financial sector, which it claims operates transparently. The UK’s actions build on over 2,700 existing sanctions against Russia, signaling a broader crackdown on third-country circumvention.
