The UK government has imposed sanctions against crypto networks that Russia uses to circumvent restrictions
On May 26, the UK government announced new sanctions against cryptocurrency and illegal financial networks that Russia uses to circumvent previously imposed restrictions. The corresponding statement was published on the government website.
“Putin’s regime is increasingly feeling the pressure on the economy from sanctions and on the battlefield from Ukraine. This month, Russia lowered its economic growth forecast for this year from 1.3% to just 0.4% and halved its forecast for 2027. As existing sanctions continue to bite, the Kremlin is increasingly turning to darknets and shadow financial systems to circumvent legal restrictions,” the message says.
Britain has announced a package of 18 sanctions aimed at cryptocurrency exchanges, the A7 network and its key representatives. According to London, it is this network that Russia is using to circumvent existing restrictions and finance the war against Ukraine. The new sanctions came into effect immediately.
“This group (A7 — ed.) uses a Kyrgyz bank suspected of facilitating payments for the network, as well as a major global cryptocurrency exchange that we suspect has transferred more than $ 1.5 billion back into the hands of the Kremlin. We are also targeting three Georgian companies that operate exchanges focused on Russia that are trying to circumvent sanctions,” the statement said.
The British government stressed that the threat to European security from Russia is also a threat to Britain itself. They noted that with the new sanctions, London “is cutting off Putin’s access to vital financial flows and sending a clear signal that Britain stands firmly in defense of shared values, security and stability.”
“If the Kremlin thinks it can circumvent our sanctions by hiding behind crypto networks and shadow financial systems, it is deeply mistaken. We will continue to act swiftly and decisively with our allies to expose, disrupt and dismantle these networks, and to ensure that those who facilitate Russian aggression suffer consequences,” British Foreign Secretary Yvette Cooper said.
Now the UK has already introduced sanctions against more than 3,300 individuals, companies and vessels that support the Russian military-industrial complex. In total, according to London’s estimates, Russia has lost more than $450 billion due to international restrictions – an amount equivalent to four years of financing the war against Ukraine.
