Full Breakdown
UK Tightens Sanctions on Russian Crypto Networks to Counter War Funding
5/27/2026, 1:25:59 AM
New Sanctions Target the A7 Crypto Settlement System
On 26 May 2026 the UK announced 18 sanctions targeting “back-door Russian sanctions evasion” and crypto finance. The core target is the Kremlin-backed A7 network, a ruble-based platform that moved >$90 billion—about half of Russia’s military budget. Designations also include a Kyrgyz bank, a global crypto exchange that transferred >$1.5 billion to Kremlin-linked entities, three Georgian firms and several individuals.
Background
Western sanctions after Russia’s 2022 invasion have pushed Moscow toward crypto and shadow financial systems. The A7 network, created in 2024 and led by Israeli-Moldovan Ilan Shor (who gained Russian citizenship that year) and minority-owned by Promsvyazbank, was sanctioned by Ukraine in February 2026 for financing missile components.
Key Actors and Designated Entities
The sanctions target the A7 network—led by Ilan Shor and linked to Promsvyazbank—a Kyrgyz bank, and crypto exchanges such as Huobi, EXMO, Bitpapa, Rapira and Aifory.
Data and Scale
The 18-designation package targets A7, which moved >$90 billion—about half of Russia’s defence budget. A crypto exchange funneled >$1.5 billion to Kremlin-linked entities. The UK has sanctioned >3,300 entities, stripping >$450 billion from Russia. Russia cut its 2026 growth forecast to 0.4 % from 1.3 %.
Official Statements
Foreign Secretary Yvette Cooper said the UK is “adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions” and will “shut off the financial lifelines that sustain Putin’s war machine,” describing the measures as a strike on the infrastructure that underpins Russia’s war economy.
Criticism of the Sanctions Approach
The package followed criticism that the UK allowed imports of liquefied natural gas from Russian terminals and continued diesel and jet-fuel purchases refined from sanctioned Russian crude, seen as a relaxation of oil-and-gas sanctions.
Conflicting Reports & Gaps
Sources describe A7’s annual flow as “more than $90 billion,” “over $90 billion,” and “approximately half of Russia’s annual military spending,” without a precise figure. The Kyrgyz bank is variously named, leaving its exact identity unclear.
Verbatim Quotes
- “Foreign Secretary, Yvette Cooper said: If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.” — Yvette Cooper, UK Foreign Secretary
- “Britain’s Foreign Secretary warns that the UK has no safe havens UK Foreign Secretary Yvette Cooper asserted that if the Kremlin believes it can slip out of the UK’s sanctions through crypto and shadow financial systems, it is sorely misguided.” — Yvette Cooper, UK Foreign Secretary
- “There will be no safe havens for those enabling Russia’s aggression.” — Yvette Cooper, UK Foreign Secretary
- “The UK is leading the international effort and adapting its sanctions to stay ahead of Russian evasion, shutting down the payment routes fuelling its war machine against Ukraine.” — Yvette Cooper, UK Foreign Secretary
What’s Next
The UK will keep refining its sanctions, monitor crypto and shadow-finance channels, and work with international partners to close emerging loopholes. The measures take effect immediately, and officials expect further designations as new evasion tactics appear.
