UK hits major crypto exchange accused of routing $1.5 billion to Putin
Key Points
- UK sanctions a major global cryptocurrency exchange accused of channelling more than $1.5 billion to the Kremlin
- Action covers 18 designations targeting the A7 network, which claimed to have moved over $90 billion in the past year
- Foreign Secretary Yvette Cooper announced the package, aimed at infrastructure used to bypass Western restrictions
- Sanctions also hit a Kyrgyz bank and three Georgian companies operating Russia-focused crypto exchanges
- UK has now sanctioned more than 3,300 individuals, businesses and ships since the start of the invasion
The UK has sanctioned a major crypto exchange it accuses of channelling more than $1.5 billion to the Kremlin.
The Foreign Office did not name the exchange in its announcement but said it was one of 18 designations covering individuals and entities linked to the so-called A7 network, a Kremlin-backed financial system used to fund military procurement and process oil revenue.
The network has claimed to have moved more than $90 billion over the past year, equivalent to roughly half of Russia’s annual military expenditure.
Alongside the unnamed exchange, the sanctions hit a Kyrgyz bank suspected of facilitating A7 payments and three Georgian companies operating Russia-focused crypto exchanges.
The measures came into force immediately on announcement.
“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken,” said Yvette Cooper, Foreign Secretary.
“The UK is adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions. 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.”
The action reflects a shift in focus towards the shadow financial systems Russia has increasingly relied on as conventional sanctions have squeezed its economy.
The Foreign Office said the A7 network is designed to bypass Western sanctions, finance military procurement, and process revenue from oil sales.
By targeting the crypto and banking infrastructure underpinning these flows rather than only the goods being procured, the UK is attempting to close off the payment routes themselves.
Moscow cut its 2026 GDP growth forecast this month from 1.3% to 0.4% and halved its projection for 2027.
The UK has now sanctioned more than 3,300 individuals, businesses and ships since the start of the invasion, with the Foreign Office estimating Russia has lost over $450 billion to international sanctions, equivalent to roughly four years of funding for its war in Ukraine.
“We are tracking down and shutting off the financial lifelines that sustain Putin’s war machine,” Cooper said.
“There will be no safe havens for those enabling Russia’s aggression. We will continue to act fast and decisively, alongside our allies, to expose, disrupt and dismantle these networks, and ensure those enabling Russia’s aggression face consequences.”
