The UK has announced sanctions against Kyrgyzstan’s financial sector and several crypto platforms accused of helping Russia circumvent Western restrictions.
Sanctions on Kyrgyzstan's Financial Sector
The UK has imposed sanctions on Kyrgyzstan’s financial sector as part of broader efforts to limit Russian influence. According to information announced on Wednesday, sanctions have been extended to over 2,700 entities in Russia. Among those blacklisted are Capital Bank of Central Asia and its director Kantemir Chalbayev, which were used to finance military goods.
Targeting Crypto Platforms
The sanctions list includes two cryptocurrency exchanges, Grinex and Meer, alongside companies linked to the operation of the A7A5 stablecoin network, which allegedly processed $9.3 billion in transactions in four months. The UK described A7A5 as an attempt to replicate the ruble on blockchain technology to undermine sanctions. Sanctions Minister Stephen Doughty stated: “If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks — they are sorely mistaken.”
Kyrgyzstan's Response to UK Allegations
Kyrgyz President Sadyr Japarov on Thursday rejected London’s allegations, warning against 'politicizing the economy.' He denied that Kyrgyzstan’s 21 banks were helping Russia evade restrictions. Japarov stated that to prevent any of them from falling under sanctions, only the state-owned Keremet Bank would work with the Russian ruble, noting that this bank had already been sanctioned by Washington for serving as a hub for Russian trade settlements.
These actions by the UK reflect a growing scrutiny of crypto networks used for sanctions evasion. Both Washington and Brussels have stepped up enforcement, warning that stablecoins and blockchain channels are increasingly being exploited by Moscow to access financing and trade avenues.
