EU to ban Russian cryptocurrency token

The European Commission has proposed to impose sanctions against the A7A5 ruble stablecoin, which helps Russia circumvent Western financial restrictions. According to Bloomberg, the new sanctions will prohibit any direct or indirect participation of European individuals and organizations in transactions with this token. This will be the first time the EU has imposed sanctions on a cryptocurrency.

A7A5 stablecoin, which is positioned as the world’s first cryptocurrency pegged to the Russian ruble, was launched in February 2025. The token was developed by A7, a company owned by fugitive Moldovan oligarch Ilan Shor and Russian state-owned Promsvyazbank. Both are already under Western sanctions. As of June of this year, the token’s turnover exceeded 12 billion units (about $ 156 million), and the total value of all A7A5 transactions reached $ 68 billion.

The token is issued as collateral for deposits in the sanctioned Promsvyazbank, and the main exchange for its trading is Grinex, registered in Kyrgyzstan. This exchange has actually become the successor to the Moscow-based Garantex crypto exchange, which was sanctioned by the US in August. The system works as a bridge between the ruble and the USDT stablecoin, allowing Russian companies to make international payments that would otherwise be impossible.

In addition to sanctions against the cryptocurrency itself, the EU also plans to take action against several banks in Russia, Belarus, and Central Asia that provide opportunities for A7A5 transactions. Analysts point out that the creation of this stablecoin was Moscow’s direct response to the disconnection from the SWIFT system and the freezing of assets after the full-scale invasion of Ukraine.

The new sanctions are to be part of the 19th package of EU restrictive measures against Russia. Experts also note that Ilan Shor used A7A5 and related domains to interfere in the elections in Moldova, in particular through vote buying. In Moldova itself, Shor was sentenced in absentia to 15 years in prison for embezzling $ 1 billion, after which he fled the country and obtained Russian citizenship.