Western compliance pressure is driving Russia toward independent digital payment solutions — including digital assets — as the country tries to avoid secondary sanctions, a senior executive at Russian tech firm A7 said. The shift in the cross-border payments ecosystem is already underway, driven by the sheer volume of sanctions imposed on Moscow.
Why Russia is seeking alternatives
Stanislav Lazarev, Deputy General Director for Sales at A7, said that the threat of secondary sanctions makes Russia’s reliance on traditional Western payment systems untenable. “The pressure from compliance requirements is forcing us to look for autonomous payment methods,” he stated. Russian banks and companies have faced escalating restrictions since the invasion of Ukraine, cutting them off from SWIFT and major card networks. The result: a growing need for channels that bypass the dollar-dominated infrastructure.
The role of digital assets
Digital assets are emerging as a potential workaround. Lazarev pointed to cryptocurrencies and central bank digital currencies (CBDCs) as tools that could let Russia settle cross-border transactions without going through Western intermediaries. Russia’s central bank has already piloted a digital ruble, though widespread use remains limited. The country’s lawmakers are also debating legislation to legalize crypto for international payments — a step that would mark a significant departure from earlier restrictions on digital currencies.
Impact on the cross-border payments ecosystem
The sheer number of sanctions is reshaping how money moves across borders, not just for Russia but for its trading partners. Countries like China and India have increased trade with Russia, but payment settlement has been a persistent bottleneck. Lazarev argued that the current system is unsustainable. “The ecosystem of cross-border payments will inevitably change,” he said. “It’s not a question of if, but when.” Independent digital solutions, he suggested, could reduce friction for Russian exporters and importers while insulating them from future sanctions.
Still, challenges remain. Russia needs to build the technical infrastructure, secure buy-in from partner countries, and ensure that the new systems don’t create new vulnerabilities. The digital ruble pilot has been small-scale, and full adoption would require years of development. Whether Russia can move fast enough to avoid secondary sanctions — and whether its partners will go along — is an open question.
