UK Targets Sanctions Circumvention and Crypto Networks Exploited by Russia
20 August 2025 – London
The United Kingdom government has announced new measures to target financial networks exploited by Russia to evade Western sanctions. This action focuses particularly on schemes involving Kyrgyzstan’s financial sector and cryptocurrency platforms that Russia has allegedly used to circumvent ongoing sanctions amid the conflict in Ukraine.
Cracking Down on Evasive Financial Networks
As part of the UK’s continued efforts to uphold sanctions imposed due to the Russian invasion of Ukraine, the government revealed a fresh wave of penalties targeting institutions and individuals facilitating illicit financial flows to Russia. Central to this crackdown are financial entities based in Kyrgyzstan, notably the Capital Bank of Central Asia, and its director, Kantemir Chalbayev, which have reportedly been used by Russia to finance military goods.
Moreover, the UK has sanctioned crypto exchanges Grinex and Meer, which operate a rouble-backed cryptocurrency token named A7A5. This token has reportedly moved approximately $9.3 billion through a dedicated crypto exchange over the past four months, serving as a mechanism to bypass Western sanctions.
Collaboration with International Allies
The UK’s announcement comes shortly after similar actions by the United States, marking a coordinated, transatlantic commitment to clamp down on sanctions evasion. These sanctions advance the shared objective held by the UK and its allies to sustain pressure on Russia’s war efforts and to promote a just and lasting peace in Ukraine.
Sanctions Minister Stephen Doughty underscored the government’s resolve, stating: “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. These sanctions keep up the pressure on Putin at a critical time and crack down on the illicit networks being used to funnel money into his war chest.”
Context and Ongoing Efforts
This development follows a high-profile meeting in Washington involving the UK Prime Minister, European leaders, Ukraine’s President Volodymyr Zelenskyy, and then US President Donald Trump, who convened to discuss avenues for securing peace in Ukraine.
The UK government emphasized that as long as violence in Ukraine persists, it and its allies will intensify pressure on Russia, including strengthening sanctions and expanding their scope to cover all mechanisms enabling the financing of the invasion. Closing loopholes and dismantling complex, opaque financial networks remain central to these efforts.
Sanctioned Entities and Individuals
The full list of newly sanctioned targets includes:
- GRINEX LLC
- CJSC TENGRICOIN
- OLD VECTOR LLC
- LEONID SHUMAKOV
- KANTEMIR KAPARBEKOVICH CHALBAYEV
- OJSC CAPITAL BANK OF CENTRAL ASIA (Capital Bank)
- ZHANYSHBEK UULU NAZARBEK
- ALTAIR HOLDING SA
Looking Ahead
The UK government reiterated that these measures are part of a broader strategy to protect national security and uphold international law by hindering Russia’s unlawful aggression. Transparency and cooperation among allies remain pivotal in these efforts.
For media inquiries, contact the Foreign, Commonwealth & Development Office (FCDO) Newsdesk via email at [email protected] or by telephone at 020 7008 3100. —
Background
The sanctions build on the UK’s extensive regime comprising over 2,700 individual and entity sanctions against Russia. This step specifically targets emerging methods of sanctions circumvention involving cryptocurrency and financial channels outside the traditional banking system.
For further details, visit GOV.UK or the Foreign, Commonwealth & Development Office section.