UK Sanctions Russia-Related Sanctions Evasion Network
The U.K. this week sanctioned several entities and people tied to a Kyrgyzstan-based financial network helping Russia evade sanctions, including through the use of cryptocurrency.
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The designations target Kyrgyzstan-based Capital Bank -- along with its director Kantemir Chalbayev -- which the U.K. said Russia uses to pay for military goods. The U.K.'s Office of Financial Sanctions Implementation also sanctioned the crypto exchange Grinex and Kyrgyzstani firm Old Vector, which worked to create the A7A5 token, a stablecoin that the U.K. said has moved more than $9.3 billion in "just four months" and which was designed "as an attempt to evade western sanctions."
The U.K. also sanctioned Kyrgyzstan-based CJSC Tengricoin and Luxembourg-based Altair Holding, two firms that the U.K. said operate in the Russian financial services sector. It sanctioned Zhanyshbek Uulu Nazarbek for helping Russia evade sanctions and Leonid Shumakov for working on sanctions evasion through the A7A5 token.
The sanctions came after the U.K. prime minister and other European leaders met in Washington to discuss ending the Russia-Ukraine war. "As long as the killing in Ukraine continues, the UK and its allies stand ready to rachet up pressure on Russia and will continue to strengthen sanctions," the U.K. said.
The U.S. imposed similar sanctions days earlier (see 2508140013).