Russia's New Method To Evade Western Sanctions

A7A5, a Russian ruble-backed stablecoin launched in Kyrgyzstan might be Russia's new found attempt to build at alternative payment system outside of the western financial rails.

According to a report by Financial Times, the new stablecoin has already processed a staggering $9.3 billion in transactions just found months after its launch.

It also has a market capitalization of approximately of $151 million and over 24,000 holders.

in February 2025, has rapidly become a central instrument for large-scale crypto transactions, according to a recent report by the Financial Times.

With a market capitalization of approximately $151 million and over 24,000 holders, A7A5 has processed a staggering $9.3 billion in transactions on Grinex—a crypto exchange widely regarded as the successor to Russia’s sanctioned Garantex platform.

Apart from Russia's national currency, A7A5 is also traded against stablecoins like Tether's USDt, as well as actual US dollar.

Grinex Successing The Fallen Garantex Platform

A7A5 has also been linked Promsvyazbank, a Moscow-based bank which has been under strict sanctions from the United States, United Kingdom, and the European Union due to its ties to Russia's defense sector.

The Token was launched shortly after U.S authorities shut down Garantex, a major Russian crypto exchange accused of facilitating over $60 billion in illicit transactions.

Shortly after the fall of Garantex, and new exchanges called Grinex emerged in Kyrgystan, which serves as the main trading venue for A7A5.

The coincidence of Grinex's launch with the fall of Garantex had triggered widespread speculation that Grinex could be the successor of the Garantex platform.

There also some proof of the correlation between the two platforms. Just before Garantex was shut down, significant volumes of USDT were reportedly moved from Garantex wallets into A7A5, and later onto Grinex.

A7A5 Token Also Shrouded With Controversy

Despite its $151 million market cap, the vast majority of A7A5’s $9.3 billion transaction volume on Grinex comes from just 124 wallets, according to the Financial Times.

"The true value of the transactions represented by these token movements is unclear: A large portion of the flows follow rigid fixed patterns which suggest they may be being used as part of an internal banking process."

A7A5’s operations have also been linked to Moldovan politician, businessman and later convicted fraudster Ilan Shor, who is subject to multiple international sanctions.

Although A7A5 claimed to have already cut ties with Shor and his A7 project in May, the Moldovan tycoon appeared on a panel at the St Petersburg International Economic Forum in June, promoting the A7A5 stablecoin.

The Bigger Picture: Crypto and Sanctions Evasion

The rise of A7A5 and Grinex underscores how crypto assets are increasingly used to circumvent international sanctions and facilitate cross-border transactions for sanctioned entities.

Russian officials have openly promoted stablecoins as a tool to bypass financial restrictions, and A7A5’s rapid adoption highlights the challenges facing regulators in monitoring and controlling illicit financial flows.

A7A5’s explosive transaction volume and its ties to sanctioned entities like Promsvyazbank and Ilan Shor make it a focal point in the ongoing struggle between regulators and those seeking to use crypto to evade sanctions.

As Grinex continues to deny any direct links to Garantex, the evidence from blockchain analytics paints a different picture—one where the boundaries between new and old platforms, and between compliance and evasion, remain blurred.

Researchers at the centre for Information Resilience also noted that the A7A5 was a deliberate effort by Russia to spread political influence, after it found online connections between the token and websites used in information campaigns in Moldova.

However, A7A5 has denied links to illicit payment activity, and claims that the token was a response to the growing demand for stablecoin pegged to Russia's local fiat.