- The UK imposed new sanctions targeting Russian crypto networks and financial entities accused of evading restrictions.
- Sanctions apply to two crypto exchanges, multiple companies, and individuals connected to Russian military funding.
- Authorities allege that over $9.3 billion was moved between exchanges using a Kyrgyzstani stablecoin.
- The measures follow similar actions by the US and are linked to efforts to support Ukraine amid ongoing conflict.
- Sanctioned individuals include directors of key entities and people linked to a Moldovan oligarch and Russian bank.
On August 20, 2025, the United Kingdom announced new sanctions against a group of Russian-linked crypto exchanges, companies, and individuals. The government said the move aims to disrupt financial systems they believe are helping Russia sidestep Western sanctions and fund its military activities.
Officials said that these actions target Grinex and Meer crypto exchanges as well as the Capital Bank of Central Asia in Kyrgyzstan. The measures also include CJSC Tengricoin, Old Vector LLC, and Altair Holding SA. The UK government claimed that Russia is using the Kyrgyz financial sector to funnel money through hidden financial networks, including cryptocurrencies.
Individuals sanctioned include Leoniid Shumakov, who is the director of the A7A5 stablecoin, as well as Zhanyshbek Uulu Nazarbek and Kantemir Kaparbekovich Chalbayev, the director of Capital Bank. According to UK authorities, A7A5—issued by Kyrgyzstani company Old Vector—enabled the transfer of approximately $9.3 billion from the exchange Garantex to Grinex in violation of Western sanctions.
The A7A5 stablecoin was reportedly created for financial firms owned by Moldovan oligarch Ilan Mironovic Shor and the sanctioned Promsvyazbank Public Joint Stock Company in Russia. Shor, who left Moldova in 2019 after being convicted in a $1 billion bank fraud case, is now a Russian citizen, according to media reports.
UK Sanctions Minister stated, “If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks—they are sorely mistaken.”
This action follows increased efforts by the UK and global allies to push for a “just and lasting peace in Ukraine.” The US enacted similar sanctions the day before a meeting between President Donald Trump and President Vladimir Putin concerning the war in Ukraine. Since then, Western leaders have met with Ukraine’s President Volodymyr Zelenskyy, while proposals for direct talks with Putin have been minimized by Russian officials.
Ongoing disagreements remain over a possible peace deal, as Russia reportedly insists that Ukraine give up territories seized during the current conflict. For additional background, reports also link Garantex to criminal groups and past intelligence agencies in Russia.
Further details can be found in the UK government’s announcement, as well as international updates from media sources and Europe/trump-putin-ukraine-land-swap.html?smid=url-share”>news reports.
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