UK Targets Sanctions Circumvention And Crypto Networks Exploited By Russia

UK cracks down on Russia’s attempts to avoid sanctions by exploiting Kyrgyz financial systems and crypto networks, building on over 2700 existing UK sanctions against Russia.
Action comes after the United States announced similar measures, demonstrating shared commitment to crack down on sanctions circumvention.
With US-led talks ongoing, the UK and our allies remain united in pursuit of a just and lasting peace in Ukraine.

Today’s action comes as the UK and international allies redoubled efforts to secure a just and lasting peace in Ukraine.

With sanctions continuing to bite, Russia has turned to the Kyrgyz financial sector to channel money through opaque financial networks, including through the use of cryptocurrencies. These networks have created a convoluted scheme to evade sanctions imposed by the UK and its partners.

Today’s action closes in on the Kyrgyzstan-based Capital Bank, and its director Kantemir Chalbayev, which Russia uses to pay for military goods. Sanctions also hit the Grinex and Meer cryptocurrency exchanges, the infrastructure behind a new rouble-backed cryptocurrency token A7A5, which has moved $9.3bn on a dedicated crypto exchange in just four months and is specifically designed as an attempt to evade western sanctions.

Keeping up the pressure on Russia’s war machine is vital to reinforcing President Trump’s efforts to stop the killing in Ukraine and force Putin to engage in meaningful talks. It is also a crucial step for security in the UK and beyond. Keeping the British people safe is this government’s number one priority and is an integral part of the Prime Minister’s Plan for Change.

Sanctions Minister, Stephen Doughty said:

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.

These sanctions keep up the pressure on Putin at a critical time and crack down on the illicit networks being used to funnel money into his war chest.

Alongside our allies, we will continue to support the US-led drive to end this illegal war and secure a just and lasting peace.

The sanctions come after the Prime Minister, European leaders, President Zelenskyy and President Trump met in Washington this week in pursuit of a just and lasting peace for Ukraine.

As long as the killing in Ukraine continues, the UK and its allies stand ready to rachet up pressure on Russia and will continue to strengthen sanctions.

These new sanctions will close the net around illicit money schemes and demonstrate our resolve to crack down on international sanctions evasions mechanisms which are helping to bankroll the invasion of Ukraine, wherever they are found.