The UK is following the US’s approach to sanction-evading crypto networks in Russia by enacting its own measures against crypto exchanges, stablecoins, and a Kyrgyzstan bank used to fund military goods.
The UK government announced its sanctions today, claiming that Russia is relying on “the Kyrgyz financial sector to channel money through opaque financial networks, including through the use of cryptocurrencies.”
They also target the Grinex and Meer crypto exchanges, the Kyrgyzstan-based Capital Bank of Central Asia, CJSC Tengricoin, Old Vector LLC, and Altair Holding SA.
Read more: Garantex reportedly tied to violent Russian debt gang and KGB successor
Sanctioned individuals include the director of the A7A5 ruble-pegged stablecoin, Leoniid Shumakov, Zhanyshbek Uulu Nazarbek, and Capital Bank Director Kantemir Kaparbekovich Chalbayev.
The UK claims that A7A5, issued by the Kyrgyzstani firm Old Vector, was used to move $9.3 billion from Garantex to Grinex in order to evade Western sanctions.
A7A5 was created for financial firms owned by the Moldovan oligarch Ilan Mironovic Shor and the sanctioned Russian bank Promsvyazbank Public Joint Stock Company.
Ilan Mironovic Shor reportedly became a Russian citizen in Moscow after fleeing Moldova in 2019 following a conviction accusing him of carrying out $1 billion in bank fraud.
The UK Sanctions Minister 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.”
Sanctions imposed before and after Ukraine-Russia peace talks
The UK notes that the sanctions follow “redoubled efforts” from itself and international allies “to secure a just and lasting peace in Ukraine.”
US sanctions were imposed the day before President Donald Trump met with President Vladimir Putin to discuss what it would take to end the invasion of Ukraine.
Western allies have since met with Ukraine’s President Volodymyr Zelenskyy, while suggestions of a face-to-face meeting between Putin and Zelenskyy have been watered down by Russian officials.
A “just” peace deal seems out of reach as Russia reportedly insists Ukraine should give up the invaded Donbas regions taken during the war.
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