A ruble-backed stablecoin called A7A5, launched in Kyrgyzstan in February 2025, has processed over $9.3 billion in transactions in just four months, according to a recent report by the Financial Times. This has triggered concerns about potential sanctions evasion and its connections to sanctioned entities. Marketed as the first digital token fully backed by the Russian ruble, A7A5 is presented as an independent and transparent project. However, its ties to blacklisted entities suggest it may be part of broader efforts to bypass Western sanctions and enable cross-border payments for Russian businesses restricted by the U.S., EU, and UK.
A7A5 has been linked to Promsvyazbank, a Russian bank under U.S. and EU restrictions, and A7, a company tied to Ilan Șor, who is convicted of embezzling $1 billion in Moldova. A7, a Russian company majority-owned by Shor and minority-owned by Promsvyazbank, was sanctioned by the UK in May 2025. The company's stated purpose was to facilitate cross-border financial transfers for Russian clients amidst Western sanctions.
The stablecoin's emergence also coincides with the shutdown of Garantex, a major Russian crypto exchange accused of facilitating over $60 billion in illicit transactions, by U.S. authorities. Shortly after, a new exchange called Grinex was launched in Kyrgyzstan, now serving as the primary trading venue for A7A5. Blockchain analytics firms Elliptic and Global Ledger suggest Grinex may be a successor platform to Garantex, though Grinex denies any direct connection. It is reported that significant volumes of USDT were moved from Garantex wallets into A7A5 before Garantex was taken down, and later onto Grinex.
Grinex exclusively handles trades in A7A5, Russian rubles, and USDT. Trading activity spikes during Moscow business hours, hinting at a concentrated user base tied to Russian businesses. There are currently 12 billion A7A5 tokens in circulation, worth approximately $156 million, but it is believed that only a relatively small group of users actively uses the token.
Researchers at the Centre for Information Resilience (CIR) noted that A7A5 might be part of Russia's efforts to spread political influence overseas, finding online connections between the token and websites used in information campaigns in Moldova.
A7A5's team denies links to illicit payment activity, stating that the token was built to serve the growing demand for stablecoins pegged to Russia's local fiat. CEO Leonid Shumakov stated that Kyrgyzstan was chosen for its “friendly jurisdiction” status, and to help Russian users cope with increasing international pressure.
Swiss blockchain research company Global Ledger found that a large amount of USDT held on Garantex was moved into A7A5, with around $29 million worth of A7A5 tokens then transferred to Grinex. Elliptic's chief scientist and founder, Tom Robinson, stated that Garantex users with outstanding balances could have these balances credited to new accounts set up on Grinex.
Despite Grinex's denial of any connection to Garantex, the links between the two exchanges and the movement of funds from Garantex to A7A5 and then to Grinex have raised concerns about sanctions evasion.
According to CoinMarketCap, A7A5 is issued in Kyrgyzstan by the company Old Vector and is fully compliant with Kyrgyz legislation on virtual asset service providers. The token operates under state supervision and meets all requirements for fiat backing, regular independent audits, and investor protection. A7A5 generates revenue from interest earnings and distributes 50% of this income to token holders daily.
