Thomas Daniels
The United Kingdom has imposed new sanctions on Kyrgyzstan’s financial and crypto infrastructure, targeting institutions and individuals allegedly linked to a ruble-pegged stablecoin scheme facilitating Russian sanctions evasion.
British authorities expanded their sanctions list to include Capital Bank of Central Asia and its director, Kantemir Chalbayev, who are accused of assisting Russian military procurement. The list also names Kyrgyz crypto exchanges Grinex and Meer, along with firms and individuals tied to A7A5, a ruble-linked stablecoin that reportedly processed $9.3 billion in transactions over four months.
Additional sanctioned entities include Grinex LLC, Meer, Old Vector LLC, CJSC Tengricoin, Luxembourg-based Altair Holding, and Leonid Shumakov, director of the A7A5 stablecoin operation.
UK Sanctions Minister Stephen Doughty emphasized the government’s firm stance:
“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.”
The move aligns with broader Western efforts to dismantle financial systems supporting Russia’s wartime economy. It also follows a parallel wave of sanctions by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which recently re-sanctioned Grinex and several affiliated firms and executives accused of facilitating illicit financial activity.
Kyrgyz President Sadyr Japarov rejected the allegations, asserting that none of the country’s 21 banks are aiding Russia in bypassing sanctions. He stated that only the state-owned Keremet Bank is authorized to conduct ruble transactions, under full government oversight, and with all profits directed to the national budget.
In a broader appeal, Japarov urged U.S. President Donald Trump and UK Prime Minister Keir Starmer not to politicize economic matters. He reaffirmed Kyrgyzstan’s commitment to international obligations but warned against undermining the nation’s economic stability and citizen welfare.
