UK sanctions crypto networks helping Russia finance war against Ukraine

Britain has announced a new sanctions package targeting cryptocurrency and financial entities that help Russia bypass Western restrictions and finance its war against Ukraine, according to a statement published on the UK government’s website earlier today.

The sanctions target crypto exchanges, Russia-linked companies, and the A7 network – a Kremlin-backed system that British authorities say has been used to evade sanctions, finance military procurement, and process payments from oil sales.

The UK government says more than $90 billion passed through the A7 network over the past year, roughly half of Russia’s annual military spending.

The new package includes a total of 18 sanctions designations. The restrictions also target individuals linked to A7, a bank in Kyrgyzstan that helped process payments for the network, and a major international crypto exchange through which more than $1.5 billion may have entered Russia. Three Georgian companies that operated Russia-focused crypto exchanges were also sanctioned.

British Home Secretary Yvette Cooper said Moscow is trying to use “shadow financial systems” and cryptocurrency networks to bypass restrictions, but that London intends to “shut off the financial lifelines that sustain Putin’s war machine.”

According to the statement, Russia’s economy remains under pressure from sanctions. The UK government noted that Russia lowered its 2026 economic growth forecast from 1.3% to 0.4% in May.

Since the start of Russia’s full-scale invasion of Ukraine, the UK has imposed sanctions on more than 3,300 individuals, legal entities, and vessels linked to the Kremlin’s interests. The British government estimates that Russia has lost more than $450 billion due to international restrictions.