Britain Imposes New Sanctions on Cryptocurrency Networks Supporting Russia

In a new move to tighten the noose on Russia's attempts to circumvent Western sanctions, the United Kingdom announced today the imposition of sanctions on eight individuals and entities suspected of facilitating Moscow's financing through financial networks and cryptocurrencies based in Kyrgyzstan.

The British Foreign Office stated that the new sanctions target the cryptocurrency platforms "Grinex" and "Mir", which trade a stablecoin linked to the Russian ruble known as "A7A5", launched last February as an alternative payment method enabling Russian companies and individuals to conduct transactions outside the traditional financial system, evading restrictions imposed by the West since the annexation of Crimea in 2014.

Stephen Doughty, the official in charge of sanctions at the British Foreign Office, confirmed in an official statement:

"If the Kremlin thinks it can hide its desperate attempts to undermine our sanctions through money laundering using dubious cryptocurrency networks, it is completely mistaken."

The sanctions also included Capital Bank in Kyrgyzstan, described as a key financial tool for Russia to provide military equipment, in addition to its director, Kantimir Chalbaev, who is accused of using the bank as a front to support Russian war efforts.

This British move comes just a week after the United States announced similar sanctions as part of a broad Western coordination to dry up Moscow's unconventional funding sources.

In a related context, British Prime Minister Keir Starmer and French President Emmanuel Macron chaired a virtual meeting on Tuesday that included around thirty countries, mostly European, to support Ukraine in the face of the ongoing Russian invasion.

This meeting follows a meeting held in Washington between U.S. President Donald Trump and his Ukrainian counterpart Volodymyr Zelensky, discussing military and economic support for Kyiv.

The recent sanctions reaffirm London's determination to close all loopholes that Russia may exploit to circumvent sanctions, especially through financial technology and emerging cryptocurrencies.