UK launches first-ever Russia sanctions against Crypto exchanges

The UK Government has sanctioned 18 individuals and organizations as part of an ongoing strategy to dismantle sanctions evasion mechanisms used by the Russian government. The measures include targeting crypto exchanges and other businesses involved in the flow of funds used to finance Russia’s war machine. 

These are the first-ever instances in which the UK applies its Russia sanctions regime against crypto exchanges. According to reports, the measures under the Russia (Sanctions) (EU Exit) Regulations 2019 will automatically freeze all UK-linked assets. This prevents UK nationals from engaging with the designated organizations.

UK sets new sanctions on exchanges helping Russia

Some of the designees in the crypto space include Exmo Exchange Limited, Bitpapa IC FZC LLC, Aifory LLC, and Rapira Group LLC. These organizations are suspected of providing financial services, funds, and economic resources to A7 Limited Liability Company. The company is an important part of the Russian evasion infrastructure.

Other financial and virtual asset sector designees include Huobi Global S.A., Nueva Cryptologia Sociedad, and Open Joint Stock Company, as a virtual asset issuer. Other designated entities include Arvix Limited Liability Company, Alistera Limited, Sooty Ltd, Open Joint Stock Company, and Eurasian Savings Bank. 

Limited liability companies such as Diamond Estate and Trace Road also met the mark. The individuals designated include Igor Olegovich Gorin, Irina Rafaelyevna Akopyan, Sergey Mendeleev, and liran cohen.

UK sanctions also targeted three Georgian firms carrying out exchanges for Russia, as well as a global crypto exchange believed to have funneled more than $1.5 billion in support back to the Kremlin. According to Elliptic, an analysis firm focused on blockchain transactions, this was the UK’s first application of the Russia sanctions to crypto exchanges.

A7 network and Kyrgyz financial links in the crosshairs

The Kremlin-linked A7 network has been another key target within the 26 May sanctions package. The entity uses the country’s financial sector to funnel money into the Russian war economy. 

According to reports, the A7 network transferred more than $90 billion last year, or about half of Russia’s annual defense spending, through oil and other means. The sanctioned Kyrgyz bank, known as the Open Joint Stock Company and Eurasian Saving Bank, is believed to be helping the A7 network make payments.

By designating these individuals and organizations, the UK hopes to cut off Russia’s funding amid Western-led sanctions.

Britain’s Foreign Secretary warns that the UK has no safe havens

UK Foreign Secretary Yvette Cooper asserted that if the Kremlin believes it can slip out of the UK’s sanctions through crypto and shadow financial systems, it is sorely misguided. The UK is evolving its strategy to counter Russia’s emerging methods to circumvent restrictions. To that end, there will be no safe haven for those who support Russia’s campaign of aggression.

The government pointed out that the new set of measures would allow sanctions to evolve to address any Russian attempts at circumvention, while cooperating with the international community to safeguard the global financial system.

So far, over 3,300 people, companies, and VASPs have been sanctioned by the UK in its Russia sanctions program. These actions have been estimated to deny Russia’s war economy of an additional $450 billion, the equivalent of two years’ worth of funding for the invasion of Ukraine. Russia, in turn, has responded to these pressures by drastically lowering its forecasts of economic growth: down from 1.3 % in 2026 to 0.4 %

The 26 May designations target specific gaps within Russia’s crypto and shadow banking industries to evade sanctions. All British entities are prohibited from dealing with the listed targets.

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