The United Kingdom slapped new sanctions on 18 entities Thursday, hitting a Kremlin-backed cryptocurrency settlement network and the banks and exchanges that help Russia dodge financial restrictions. Foreign Secretary Yvette Cooper announced the package, which targets the A7 network — a ruble-based settlement system — along with a Kyrgyz bank, three Georgian companies, and a global cryptocurrency exchange that has sent more than $1.5 billion to entities close to the Kremlin.
The A7 network and its token
At the center of the sanctions is A7, a cross-border settlement platform that uses a ruble-backed token called A7A5. The network is linked to Promsvyazbank, a state lender that supports Russia’s defense sector. According to the UK government, A7 claims to have moved more than $90 billion in the past year — that’s roughly half of Russia’s annual military spending. A7-connected wallets handle a significant share of cross-border transfers for sanctioned oligarchs and state-linked businesses.
Why crypto is central to the sanctions
Crypto has become a key tool for Russia to replace severed bank links. Billions of dollars in stablecoin and token flows bypass traditional banking checks through venues in Central Asia and the Caucasus. The new designations specifically target that pipeline: a Kyrgyz bank suspected of handling A7 flows, three Georgian companies running Russia-focused trading platforms, and a major exchange that routed payments through those jurisdictions. The UK has now sanctioned more than 3,300 individuals, companies, and vessels since the full-scale invasion of Ukraine in 2022.
The economic toll
International sanctions have stripped more than $450 billion from Russia’s economy, equivalent to an estimated two years of war funding. The pressure is showing: Russia’s Economy Ministry just cut its 2026 growth projection from 1.3% to 0.4% and slashed the 2027 estimate from 2.8% to 1.4%. The timing of the latest sanctions isn't great for Moscow — the A7 network was a key cog in keeping trade flowing despite Western restrictions.
The UK is expected to continue targeting the financial infrastructure that keeps Russia’s war machine running. For now, the 18 new designations take immediate effect, freezing any assets held in British jurisdiction and barring UK entities from dealing with the listed firms.
