UK sanctions crypto exchanges and “A7 network” in crackdown on Russian evasion systems

The UK has announced new sanctions targeting cryptocurrency networks and illicit financial channels it says are being used by Russia to bypass existing restrictions and sustain its war economy.

Officials said Russia has increasingly turned to “dark networks and shadow financial systems” to move funds around sanctions and maintain access to international payment routes despite growing restrictions imposed by Western countries.

Crypto networks and shadow systems targeted in new sanctions package

The government said crypto exchanges and other digital finance platforms are being used to move funds around existing sanctions.

The new package includes 18 designations targeting what the UK describes as illicit financial infrastructure used for sanctions evasion, including crypto-linked services and intermediaries operating across multiple jurisdictions.

Foreign Secretary Yvette Cooper said the UK is stepping up efforts to stay ahead of Russian evasion tactics.

Sanctions hit Kremlin-linked “A7 network” and associated entities

The sanctions also target the so-called “A7 network,” which the UK describes as a Kremlin-linked financial system designed to bypass Western restrictions and support Russia’s war economy.

According to the UK government, the network uses financial channels in Kyrgyzstan to route transactions linked to Russian state activity, including energy revenues and military procurement, while obscuring the origin and destination of funds.

Officials say the system operates through third-country banking structures and alternative payment routes intended to reduce exposure to Western sanctions pressure.

The UK says the network has processed large-scale financial flows connected to Russia’s war effort and is linked to wider crypto-based and cross-border payment services used for sanctions evasion.

UK says sanctions pressure on Russia is increasing

The Foreign, Commonwealth & Development Office said sanctions continue to add pressure on Russia’s economy alongside battlefield losses in Ukraine.

It said Russia has revised down its growth forecasts and faces increasing constraints from international financial restrictions.

Cooper said the UK is “going after the infrastructure that underpins its war economy” and will continue working with allies to disrupt evasion routes.

UK signals continued escalation of sanctions enforcement

The government said it has now sanctioned more than 3,300 individuals, companies, and vessels since the start of Russia’s full-scale invasion.

Officials said Russia’s war economy has lost hundreds of billions due to sanctions and that further measures will continue as long as the war persists.

The UK said it will continue working with allies to “expose, disrupt and dismantle these networks” and strengthen enforcement against evolving sanctions evasion channels.