The European Union is set to impose sanctions on A7A5, a ruble-backed stablecoin linked to sanctioned Russian actors, as part of efforts to disrupt Moscow’s use of cryptocurrencies for sanctions evasion. According to internal EU documents reviewed by Bloomberg on October 6, 2025, the measures would prohibit EU-based entities from engaging in any transactions involving the token, targeting its role in facilitating $68 billion in cross-border flows since February 2025. For sanctions compliance officers, crypto regulators, and financial crime experts searching EU sanctions A7A5 stablecoin, Russia ruble-backed crypto evasion, or A7A5 sanctions 2025, A7A5—launched in February 2025 by Moldovan banker Ilan Shor and Russia’s state-owned Promsvyazbank (PSB)—has surged to a $500 million market cap, capturing 43% of the $1.2 billion non-USD stablecoin space despite US and UK sanctions on its infrastructure. The EU proposal also targets banks in Russia, Belarus, and Central Asia for enabling these transactions, aiming to close loopholes in the bloc’s sanctions regime since Russia’s 2022 Ukraine invasion. While the sanctions require unanimous approval from all 27 member states, they could be amended before implementation, reflecting ongoing challenges in regulating crypto’s role in illicit finance.
A7A5’s growth—despite US sanctions on its issuers—demonstrates the token’s utility in Russia’s sanctioned economy, but the EU’s move aims to stem further proliferation.
A7A5’s Origins and Ties to Sanctioned Entities
A7A5, pegged 1:1 to the Russian ruble, was issued in February 2025 by A7—a cross-border payments firm owned by Moldovan fugitive banker Ilan Shor and Russia’s state-owned Promsvyazbank (PSB)—and registered in Kyrgyzstan through Old Vector. It promises daily passive income (half the interest on ruble reserves) and has been promoted as a tool for settlements “with any country and in any currency within five working days.” Despite sanctions on PSB (2022), Garantex (2022), and A7/Old Vector (August 2025), A7A5’s market cap stabilized at $500 million, with 41.6 billion tokens in circulation and $68 billion in transactions by September 26, 2025. The EU’s proposal would extend US/UK bans on Garantex, Meer, and Grinex exchanges, which facilitated A7A5’s infrastructure.
| Entity | Sanction Date | Jurisdiction | Reason |
|---|---|---|---|
| Promsvyazbank (PSB) | 2022 | US, UK, EU | Russia Invasion Support |
| Garantex Exchange | 2022 | US, UK, EU | Sanctions Evasion |
| A7/Old Vector | August 2025 | US | Token Issuance |
| Grinex/Meer | August 2025 | US | Infrastructure for A7A5 |
Enforcement Challenges: Kyrgyzstan’s Role and Token Resilience
A7A5’s registration in Kyrgyzstan—via Old Vector—complicates enforcement, as the country has not sanctioned it, providing a jurisdictional loophole. Following US sanctions, over 80% of A7A5’s supply was destroyed and reissued to new wallets, allowing it to surge 250% in a day to $491 million before stabilizing at $500 million—43% of the $1.2 billion non-USD stablecoin market. EU sanctions, requiring 27-member state approval, may be amended, but they target A7A5’s utility in evading SWIFT bans for oil trade and remittances. The token’s resilience—despite sanctions—stems from reissuance tactics and its promotion at events like Token2049, where it was briefly a sponsor before revocation.
Broader Sanctions Landscape: Targeting Crypto Evasion
The EU’s focus on A7A5 extends its 2022 sanctions regime, which has frozen $300 billion in Russian assets and banned crypto transactions with sanctioned entities. Similar measures by the US and UK have targeted Garantex and PSB, but A7A5’s Kyrgyzstani base and reissuance tactics have sustained its operations, processing $6 billion in transactions post-sanctions. The EU’s proposal also eyes banks in Russia, Belarus, and Central Asia for facilitating these flows, aiming to close on-ramps for sanctioned entities. Bloomberg
