The European Union has introduced its 19th round of sanctions against Russia, widening its focus to include the digital asset sector.
Among the measures, EU officials are directly targeting a state-backed stablecoin known as A7A5, which they claim has become a crucial financial instrument for Russia’s wartime economy.
Stablecoin Becomes a Sanctions Target
According to the EU Council, the Russian government has increasingly relied on cryptocurrencies to evade Western sanctions, with A7A5 playing a central role in cross-border financing. The stablecoin, reportedly issued through an entity in Kyrgyzstan, has facilitated billions in transfers since its launch.
To curb its use, the EU’s latest measures ban all transactions involving A7A5 and sanction the coin’s developer, its Kyrgyz issuer, and the exchange platform that handles much of its liquidity. The European bloc says this is part of a broader crackdown on crypto channels supporting Russia’s access to global markets.
EU High Representative Kaja Kallas stated that the new sanctions cover “energy, banking, and crypto exchanges,” as well as restrictions on Russian diplomatic activity in Europe.
We just adopted our 19th sanctions package.
It targets Russian banks, crypto exchanges, entities in India and China, among others.
The EU is curbing Russian diplomats’ movements to counter the attempts of destabilisation.
It is increasingly harder for Putin to fund this war.
— Kaja Kallas (@kajakallas) October 23, 2025
Financial Networks Under Pressure
Beyond the crypto sector, the sanctions extend to at least eight banks and oil traders based in Tajikistan, Kyrgyzstan, the UAE, and Hong Kong, all accused of helping Russia bypass earlier trade restrictions.
Several major Russian financial institutions – Istina, Zemsky Bank, Absolut Bank, MTS Bank, and Alfa-Bank – are also blacklisted, alongside four banks in Belarus and Kazakhstan linked to Moscow’s payment infrastructure.
The EU has now prohibited any cooperation with Russia’s National Payment Card System (“Mir”) and its Fast Payments System (“SBP”). Tighter controls have also been placed on trade with companies operating in nine Russian special economic zones that have reportedly supported military supply chains.
Growing Concern Over Crypto’s Role
Recent reports indicate that the A7A5 stablecoin, pegged to the Russian ruble, has processed more than $6 billion in cross-border transactions since August, despite earlier U.S. sanctions targeting its network. Analysts say the token has become a preferred tool for bypassing financial restrictions and facilitating trade across Central Asia and the Middle East.
Russia Pushes Ahead With Legalization
In a parallel development, Russia is preparing to formally legalize cryptocurrency for international trade. Officials in Moscow argue that regulation will allow the government to monitor the flow of digital assets while still enabling cross-border transactions outside of traditional banking systems.
While Russia’s legalization plan underscores its growing dependence on digital currencies, the EU’s sanctions highlight the mounting geopolitical tension surrounding blockchain finance. What was once viewed as a frontier innovation is now becoming a key battleground in global economic warfare.
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Source: https://coindoo.com/eu-targets-russias-stablecoin-network-in-sweeping-new-sanctions/