New UK sanctions target crypto networks used by Russia to bypass restrictions

Helen Corbett and Nina Lloyd, Press Association Political Staff

A new package of UK sanctions aiming to shut off funding to Russia’s war effort will target crypto networks.

They target cryptocurrency exchanges and the so-called “A7 network”, which the Foreign Office said was being used by Russia to evade existing restrictions and channel funds to fuel its war against Ukraine.

Foreign Secretary Yvette Cooper said: “If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.

“The UK is adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions.

“We are going after the infrastructure that underpins its war economy at the same time as Ukraine is increasing the pressure on Russia on the battlefield.

“We are tracking down and shutting off the financial lifelines that sustain Putin’s war machine.

“There will be no safe havens for those enabling Russia’s aggression.

“We will continue to act fast and decisively, alongside our allies, to expose, disrupt and dismantle these networks, and ensure those enabling Russia’s aggression face consequences.”

The department said the “A7” gang was using a Kyrgyz bank suspected of facilitating payments for the network, alongside a major global cryptocurrency exchange that which officials suspect has channelled over 1.5 billion dollars (around £1.1 billion) back into the Kremlin’s hands.

A package of 18 designations will come into effect immediately, the Foreign Office said.