EU Targets A7A5 Stablecoin in 19th Sanctions to Curb Russia’s War Funding
The European Union has its 19th sanctions package against Russia, expanding restrictions to include a , and its associated crypto platforms.
This marks the first time the has explicitly sanctioned a digital asset, reflecting growing concern over the role of cryptocurrencies in financing Moscow’s war efforts.
Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy, said that:
“We have just adopted our 19th package of sanctions. It targets Russian energy, banks, crypto platforms, and entities in China, among others. The EU is also regulating the movements of Russian diplomats to counter attempts at destabilisation. It is becoming increasingly hard for Putin to finance his war. Every euro we deny Russia is one it cannot spend on war. The 19th package will not be the last.”
Crypto at the Core of Sanctions
The European Commission said the new package introduces “full-fledged sanctions on the developer of a widely used rouble-backed stablecoin A7A5, the Kyrgyz issuer of that coin, and a related major trading platform.”
Investigations found that A7A5 processed billions of dollars in cross-border transfers since its launch, assisting Russian entities bypass traditional payment channels.
The sanctions make it illegal for EU citizens and companies to hold, trade, or facilitate transactions involving A7A5. Assets tied to the token’s developer and affiliated platforms will be frozen, and regulated financial institutions must block or report related activity.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union added that:
“With this 19th package we are deploying a very wide range of additional measures to fragileen Russia’s faltering economy even further. A ban on LNG will hit where it hurts most, while additional measures on financial services – including crypto – and stronger anti-circumvention measures will also have a strong impact.”
Officials described the decision as a “necessary step” to close loopholes that allowed sanctioned Russian actors to move funds through third-party jurisdictions. The package also singles out a cryptocurrency platform in Paraguay accused of facilitating trades involving A7A5.
The EU’s action follows similar steps by the United States and and Russian entities linked to the token. The move aligns Europe’s sanctions with its allies, signaling a coordinated crackdown on crypto-based evasion tactics.
