UK cracks down on backdoor Russian sanctions evasion with tough new measures
UK sanctions – The UK has announced immediate sanctions aimed at cryptocurrency exchanges and the Kremlin-backed A7 network, which it says funnels money into Russia’s war economy. The package includes 18 new designations and new measures targeting A7-linked individuals and K
For years, sanctions have been designed to squeeze Russia’s ability to finance its war. Now the UK is going after the plumbing—especially the digital routes it says are being used as backdoors.
The UK has announced a new package of sanctions targeting cryptocurrency exchanges and the ‘A7 network’, a system the government says Russia uses to bypass existing restrictions and channel funds into its war economy against Ukraine. The sanctions are due to come into force immediately.
Foreign Secretary Yvette Cooper framed the action as a race against evasion. “If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems. it is gravely mistaken. ” she said. “The UK is adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions.”.
Cooper added that Britain is focusing on the infrastructure behind those tactics. “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,” she said. “There will be no safe havens for those enabling Russia’s aggression.”.
“The killing in Ukraine” was the reference point for the government’s message of urgency. Cooper said the UK and its allies will “continue to act fast and decisively” to expose, disrupt and dismantle the networks involved, and ensure those enabling Russia’s aggression face consequences.
The target isn’t only the exchanges. The UK says 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.” It also claims 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 includes 18 designations. The UK says these directly target “Russia’s illicit financial infrastructure used to move funds, procure goods, and sustain its war.” The measures also extend to “key A7-linked individuals,” alongside companies tied to sanctions-bypass attempts.
The government’s statement points to how payments are allegedly being routed: it says the A7 network is using “a Kyrgyz bank suspected of facilitating payments for the network. ” and “a major global cryptocurrency exchange that we suspect has channelled over $1.5 billion back into the Kremlin’s hands.” In addition. the UK says it is targeting “3 Georgian companies operating Russia focused exchanges seeking to evade sanctions.”.
Russia’s war is the context the UK uses to justify the pressure campaign. The statement says Russia’s “unprovoked and illegal invasion of Ukraine” and continued strikes on innocent civilians and vital infrastructure have “shattered peace in Europe. ” and argues that “a threat to European security is a threat to our security at home.”.
The UK says today’s announcements mark “a further step” in a sustained effort to erode Russia’s ability to fund its illegal full-scale invasion and to ramp up pressure on Putin’s war chest. It also puts the measures in a broader scale narrative: “To date the UK has sanctioned over 3. 300 individuals. businesses and ships. ” and it says Russia’s war economy is “creaking. ” having “lost over $450 billion due to international sanctions. ” which it describes as “the equivalent of two years of funding for Putin’s illegal war.”.
The pressure isn’t coming only from policy. The government also points to strains it says Russia is feeling at home. This month, May 2026, it says Russia slashed its economic growth forecast for this year from 1.3% to just 0.4%, and halved its forecast for 2027.
The UK’s position is that as Russia looks to expand financial networks globally. Britain and its allies will keep disrupting them and working to protect the integrity of the international financial system while supporting Ukraine. The message is blunt: “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.”.
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