FT: Russia circumvents US sanctions through cryptocurrency – new transfer system has already conducted $6 billion in transactions
6 October 20:54
Despite US sanctions against its banks and crypto exchanges, Russia has resumed using cryptocurrency payments, reports "Komersant Ukrainian".
According to theFinancial Times, since August 2025, more than $6 billion worth of transactions have been made using the A7A5 stablecoin pegged to the ruble.
How the scheme works
- A7A5 is traded on the Grinex crypto exchange in Kyrgyzstan.
- The exchange was actually the successor to Moscow-based Garantex, which was closed by the United States on charges of money laundering, terrorism, and drug trafficking.
- After Grinex came under sanctions, the developers of A7A5 “zeroed out” wallets with sanctioned tokens, but restored the same amounts in new wallets. This method makes it difficult to trace funds.
- One of the key wallets, TNpJj, has conducted $6.1 billion in transactions since August.
Legalization within Russia
Last week, the Russian authorities granted A7A5 the official status of a “digital financial asset.” This allows exporters and importers to officially use it for international payments through the state-owned Promsvyazbank, which is under sanctions and finances defense.
In addition, the bank owns 49% of the A7 system, a cross-border payment network that is also expanding in Africa.
Who is behind A7
- The CEO is Ilan Shor, a fugitive Moldovan oligarch who now lives in Moscow.
- He claims that the system has already conducted more than $86 billion in transactions in 10 months.
- The A7 network also receives loans from the Russian state development bank VEB.
Why it matters
The actual “reset” of the sanctioned tokens allows Russia to circumvent international restrictions and support cross-border payments.
Analysts at the London-based Center for Information Resilience (CIR ) believe that the A7 network is of increasing “political importance” to Russia’s military economy.
As a reminder, in March, the United States shut down the Garantex crypto exchange for activities related to hacking and terrorism. Earlier, the issuer Tether blocked $28 million on wallets associated with Garantex. In September, the UK imposed restrictions on companies from Kyrgyzstan for helping Russia circumvent sanctions.
