The European Union has imposed a new round of sanctions targeting Russia, focusing on the A7A5 stablecoin and related crypto exchanges. This is part of the 19th sanctions package against Russia, aimed at further restricting Moscow's ability to finance its military operations. The sanctions also target banks, entities in India and China, and aim to close loopholes used to evade existing restrictions.

The sanctions specifically target the A7A5 stablecoin, a ruble-backed cryptocurrency developed by A7, a cross-border payments company, with investments from Promsvyazbank (PSB), a Russian state-owned bank already under sanctions. The EU restrictions prohibit any direct or indirect engagement by EU-based entities in transactions involving the A7A5 token. The EU is also targeting banks in Russia, Belarus, and Central Asia for facilitating cryptocurrency-related transactions. According to reports, as of September 26, 2025, there were 41.6 billion A7A5 tokens in circulation, valued at $496 million. Total A7A5 transactions at that time were valued at $68 billion.

A7A5 was launched in Kyrgyzstan in January 2025 and is promoted as the world's first stablecoin pegged to the Russian ruble, supposedly backed by fiat ruble deposits in PSB bank accounts. A7 was created in October 2024 to facilitate cross-border financial transfers for Russian clients, circumventing Western sanctions. The EU has determined that A7A5 has emerged as a tool for financing activities supporting Russia's war in Ukraine.

The EU is also curbing the movement of Russian diplomats to counter destabilization attempts. These measures are designed to make it increasingly difficult for Putin to fund the war in Ukraine. The EU's foreign policy chief, Kaja Kallas, stated that the sanctions target Russian banks, crypto exchanges, and entities in India and China.

The inclusion of entities based in India and China reflects the EU's increasing focus on third-country compliance with sanctions regimes. This demonstrates the EU's commitment to addressing sanctions evasion through international supply chains and financial networks operating outside direct European jurisdiction.

These sanctions follow similar measures taken by the United States, which has also sanctioned A7 and associated entities. The UK's Office of Financial Sanctions Implementation (OFSI) has also sanctioned entities involved in facilitating A7A5 trades.