The European Union (EU) is moving to choke off A7A5, the ruble-backed token routing billions through Kyrgyzstan into European crypto markets, but available data suggests the sanctioned flow represents just 2.37% of the bloc-wide Bitcoin trading volume.
As Bloomberg News reported on Oct. 6, the EU proposed sanctions on A7A5, the stablecoin issued by cross-border payments firm A7 and Russia’s state-owned Promsvyazbank (PSB).
The restrictions will prohibit EU-based entities from engaging in transactions involving the token. The bloc also plans to target several banks in Russia, Belarus, and Central Asia for enabling crypto-related transactions.
A7 is owned by Moldovan banker Ilan Shor and PSB, which the UK, EU, and US sanctioned in 2022 following Russia’s invasion of Ukraine.
Garantex, the Russia-based crypto exchange that helped create A7A5, was sanctioned the same year, while A7 itself was sanctioned in early 2025.
Despite these measures, A7’s operations continue to expand. The firm launched a digital bill of exchange for international settlements through its Kyrgyz subsidiary, allowing holders to receive A7A5 tokens on the Tron network or exchange them for Russian rubles.
Elliptic calculated 41.6 billion A7A5 tokens were in circulation as of Sept. 26, valued at $496 million, with cumulative transaction value reaching $68 billion.
A7A5 dominates ruble-to-crypto rails
The A7 network operates the most prominent route to move rubles into crypto markets.
According to reports, users convert Russian rubles into A7A5 within the A7/Old Vector setup, trade the stablecoin on Kyrgyzstan-registered exchange Grinex, then swap into dollar stablecoins, typically USDT.
The tokens are issued on Ethereum and Tron before routing to recipients, including potentially EU-based virtual asset service providers.
A second pathway runs through Russia-based OTC and peer-to-peer markets into USDT, often facilitated on TRON.
The US sanctioned Netex24 and Bitpapa for operating crypto on-ramps serving sanct
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Author: Gino Matos
