The European Union is proposing fresh sanctions targeting A7A5, a ruble-backed stablecoin linked to sanctioned Russian actors, according to draft documents reviewed by Bloomberg News.
Under the proposed measures, EU-based entities would be prohibited from directly or indirectly engaging in any transactions involving the A7A5 token. The new sanctions also extend to several banks in Russia, Belarus, and Central Asia accused of facilitating crypto transactions that bypass Western restrictions.
The A7A5 token was developed by A7, a cross-border payments company co-owned by Ilan Shor, a Moldovan fugitive financier, and Russia’s state-owned lender Promsvyazbank (PSB). Both Shor and PSB are already under Western sanctions, with PSB blacklisted by the EU, UK, and US in 2022 over Russia’s invasion of Ukraine. A7 and its crypto partners, including sanctioned exchange Garantex, have been instrumental in helping Russian businesses navigate around international financial barriers.
Despite the sanctions, A7’s operations have expanded. Through its subsidiary A7-Kyrgyzstan, the firm recently launched a digital bill of exchange service allowing users to receive A7A5 tokens on the Tron blockchain, which can be converted to rubles or other currencies.
As of September 26, over 41.6 billion A7A5 tokens were in circulation, valued at approximately $496 million. The total volume of transactions involving the token has reached $68 billion, according to blockchain analytics firm Elliptic.
The proposal still requires unanimous approval from all 27 EU member states and may undergo revisions before adoption.
