UK Sanctions Russian-Linked Crypto and Banking Networks

The United Kingdom imposed new sanctions on Tuesday targeting Russian-linked cryptocurrency platforms, banks and financial networks that it said were being used to bypass existing restrictions linked to Russia’s invasion of Ukraine.

The measures freeze the assets of the designated entities and individuals and bar UK firms from processing payments for them or maintaining correspondent banking ties, officials said.

British officials said the package focuses on what they called “shadow financial systems” that support Russia’s war economy, including the Kremlin-backed A7 network, which London said has been used to route funds, finance procurement and exploit foreign banking systems to evade restrictions.

The sanctions also target crypto exchanges and entities operating Russia-focused platforms, including a Kyrgyz bank and multiple firms registered in jurisdictions including Georgia and the United Arab Emirates, along with individuals tied to the network, officials said.

Government says move aims to cut off payment routes

The UK said it was “tracking down and shutting off” payment routes that it believes are helping fund Moscow’s war effort in Ukraine.

Foreign minister Yvette Cooper said the UK would work with allies to “expose, disrupt and dismantle” networks that enable Russia’s aggression, and to impose consequences on those involved.

The Russian embassy in London did not immediately respond to a request for comment.

Context follows fuel-import carve-out decision

The sanctions were announced nearly a week after Britain said it would defer a ban on imports of diesel and jet fuel derived from Russian crude refined in third countries. The government described that decision as a phased approach to sanctions rather than an easing of restrictions.

Officials did not provide a timeline on further measures, but the government signaled it will continue to pursue additional action against sanctions-evasion channels in coordination with allies.