The United Kingdom has announced a fresh wave of sanctions targeting Kyrgyz banks, crypto exchanges and individuals accused of helping Russia evade Western restrictions through a ruble-backed stablecoin operation worth $9.3 billion.

Crackdown on Ruble-Backed Stablecoin

According to the UK government, the network centred around the A7A5 token was designed to replicate the Russian ruble on blockchain systems and processed $9.3 billion in transactions in just four months. Officials described the project as a direct attempt to bypass sanctions imposed on Moscow.

The latest measures build on over 2,700 sanctions already imposed by the UK since the beginning of Russia’s war in Ukraine. They follow a similar move taken by the United States last week against many of the same actors.

Banks and Exchanges Blacklisted

Among those sanctioned was the Capital Bank of Central Asia, along with its director Kantemir Chalbayev, who was accused of facilitating payments for Russian military goods. Two Kyrgyz crypto exchanges, Grinex and Meer, were also blacklisted.

Entities linked to the infrastructure supporting A7A5, including Luxembourg-based Altair Holding, CJSC Tengricoin, Old Vector and A7A5 director Leonid Shumakov, were added to the sanctions list.

Sanctions Minister Stephen Doughty said Russia’s attempts to disguise financial flows through crypto would not succeed. “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,” he warned.

Grinex Seen as Garantex Successor

Authorities highlighted that Grinex had been widely viewed as the successor to Garantex, a Russian exchange sanctioned in the past. Reports suggested that Grinex credited balances of former Garantex users. In March, Tether froze $27 million in USDT linked to Garantex.

Last week, the US Treasury’s Office of Foreign Assets Control (OFAC) not only re-designated Garantex but also sanctioned Grinex, three executives and six firms in Russia and Kyrgyzstan accused of enabling illicit financial transactions.

Kyrgyzstan Pushes Back Against Claims

Kyrgyz President Sadyr Japarov rejected the UK’s announcement, arguing that none of the country’s 21 banks had been involved in supporting Russia’s sanction evasion. He warned London against politicising the economy and insisted Kyrgyzstan was committed to honouring its international obligations.

“To prevent any of them from falling under sanctions, we have decided that only the state-owned Keremet Bank will work with the Russian ruble,” Japarov said. Keremet Bank, however, was already sanctioned by the US earlier this year for processing Russian trade payments.

The president stressed that protecting Kyrgyz citizens and the country’s economic interests remained his priority. “I will not allow the interests of our citizens and the trade and economic development of the country to be reduced to nothing,” he said.