- UK ramps up pressure on Putin's war machine with tough
new sanctions, targeting crypto networks used to bypass
Britain's sanctions.
- New sanctions also hit the Kremlin-backed A7
network, which actively exploits
Kyrgyzstan's financial systems to channel
funds into Russia's war economy.
- The UK is leading the international effort and
adapting its sanctions to stay ahead of Russian
evasion, shutting down the payment routes fuelling its
war machine against Ukraine.
Crypto and illicit finance networks exploited by Russia to
circumvent UK sanctions are being targeted today as the
government ramps up pressure on Putin's war machine to support
Ukraine.
Putin's regime is increasingly feeling the pressure on the
economy from sanctions, and on the battlefield from
Ukraine. This month [May 2026], Russia slashed 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 has
increasingly turned to dark networks and shadow financial systems
to bypass legal restrictions. Today's action shows the UK
is moving faster and further than ever before
to clamp down on these routes and adapt its approach to stay
ahead of Russian evasion tactics.
The UK has today announced a new package of sanctions targeting
cryptocurrency exchanges and the ‘A7 network', used by Russia to
evade existing restrictions and channel funds
to fuel its barbaric war against Ukraine. These
sanctions will come into force immediately.
Foreign Secretary, said:
“If the Kremlin thinks it can evade our sanctions
by hiding behind crypto networks and shadow financial systems, it
is gravely mistaken.
“The UK is adapting and strengthening our approach to target
the evolving tactics Russia is using to evade
restrictions. We are going after the infrastructure that
underpins its war economy at the same time as Ukraine is
increasing the pressure on Russia on the battlefield.
“We are tracking down and shutting off the financial
lifelines that sustain Putin's war machine. There will be no safe
havens for those enabling Russia's aggression.
“We will continue to act fast and decisively, alongside our
allies, to expose, disrupt and dismantle these networks, and
ensure those enabling Russia's aggression face
consequences.”
The A7 network is a Kremlin-backed system designed to
bypass Western sanctions, finance military
procurement, and process funds from the sale
of oil to fund its war economy. The
network claimed to have moved more than $90 billion
last year – equivalent to roughly half of Russia's
yearly military expenditure.
Today's package of 18 designations directly
targets Russia's illicit financial infrastructure used to move
funds, procure goods, and sustain its war.
New measures also hit key
A7-linked individuals. This gang is using a Kyrgyz bank
suspected of facilitating payments for the network,
alongside a major global cryptocurrency exchange that we
suspect has channelled over $1.5 billion back into the
Kremlin's hands. We are also targeting 3 Georgian companies
operating Russia focused exchanges seeking to evade
sanctions.
Russia's unprovoked and illegal invasion of Ukraine and
continued strikes hitting innocent civilians and vital
infrastructure has shattered peace in Europe. A threat
to European security is a threat to our security at home, but
through UK sanctions we are severing Putin's access to vital
cashflows and sending a clear message that the UK stands firmly
in defence of our shared values and Britain's safety and
stability.
Today's announcements marks a further step in the
UK's sustained effort to erode Russia's ability to fund its
illegal full scale invasion, ramping up pressure on Putin's war
chest. To date the UK has sanctioned over 3,300
individuals, businesses and ships meaning Russia's war
economy is creaking - having lost over $450 billion due to
international sanctions, the equivalent of four years of funding
for Putin's illegal war.
As Russia seeks to expand these financial networks
globally, the UK is leading efforts to disrupt them, working with
allies to protect the integrity of the international financial
system and support Ukraine for as long as it takes.
As long as the killing in Ukraine continues, the UK
and its allies stand ready to ratchet up pressure
on Russia and will continue to
strengthen sanctions at every opportunity.
Notes to editors:
- Last week (Tuesday 19 May) the government also announced new
sanctions on oil and gas, including bans on a range of refined
oil products, paraffin, naptha and lubricants. As part of this,
two targeted, short-term licences were introduced to phase in the
introduction of the measures and to support flexibility in UK
supply and global markets. The licences are temporary and
reviewed regularly - this is not a lifting or easing of
pre-existing sanctions on Russia.
