Key facts
- UK sanctioned six entities and one individual for alleged Russia sanctions evasion.
- Sanctioned crypto firms include Cryptomus and TokenSpot.
- Sanctioned payment platforms include VexPay and Tsunami Payments.
- The A7 network, allegedly used by Russia, claimed to move over $90 billion last year.
- The UK sanctions now cover more than 90% of Russia's oil production capacity.
The UK has imposed sanctions on six entities and one individual, accusing them of facilitating Russia's circumvention of financial sanctions. The targeted entities include crypto exchanges Cryptomus and TokenSpot, and payment platforms VexPay and Tsunami Payments, all based in Kyrgyzstan or linked to it. Xeltox Enterprises, a Canadian-registered company, was also designated for its ownership of Cryptomus and its activities via the A7 network.
The sanctions are part of a broader package of 38 measures aimed at disrupting Russia's war funding. This package also includes Russian oil companies Zarubezhneft and INK Capital, along with 12 additional "shadow fleet" tankers. The UK government stated that its sanctions now encompass over 90% of Russia's oil production capacity.
Additionally, 17 entities and individuals involved in supplying critical components for Russia's missile and drone production were sanctioned. The UK government highlighted the A7 network as a key Kremlin-backed "illicit finance network" that allegedly moved more than $90 billion last year, representing roughly half of Russia's annual military spending.
This action follows previous sanctions by the UK, U.S., and EU against crypto businesses aiding Russia. In May, the UK sanctioned HTX (formerly Justin Sun's Huobi) for similar reasons. Kyrgyzstan had previously ordered 50 companies to cease activities due to sanctions risks.