UK Imposes Sanctions on Kyrgyz Crypto Networks Aiding Russian Sanctions Evasion

The United Kingdom has imposed new sanctions targeting Kyrgyz financial institutions and cryptocurrency networks accused of helping Russia evade Western sanctions related to the war in Ukraine. These sanctions focus on entities such as Old Vector and Grinex, which support the infrastructure behind the rouble-pegged stablecoin A7A5, a token designed to circumvent sanctions and that has reportedly moved billions of dollars in a few months. The measures also target Kyrgyzstan-based Capital Bank and its director Kantemir Chalbayev, which Russia allegedly uses to pay for military goods. The UK’s actions align with similar recent U.S. sanctions and follow discussions involving President Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders, underscoring a coordinated effort to pressure Russia. British sanctions minister Stephen Doughty emphasized that attempts by the Kremlin to launder money through dubious crypto networks will not succeed, reinforcing international resolve to cut off funding for Russia’s war efforts. These coordinated sanctions highlight the ongoing commitment of the UK, U.S., and allies to enforce sanctions and seek a just and lasting peace in Ukraine.