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A cross-party group of British MPs has called on the government to sanction senior Kyrgyz officials for allegedly allowing a ruble-pegged cryptocurrency to operate from Kyrgyzstan, facilitating Moscow’s ongoing war in Ukraine. The platform, A7A5, is currently under Western sanctions for its role in supporting Russian financial interests.
In a letter to Foreign Secretary Yvette Cooper, 26 lawmakers stated that despite existing restrictions, the platform “continues to function and expand,” becoming the primary platform for Russian entities seeking to evade sanctions and access to international currency markets.
The letter, seen by the OCCRP, claims A7A5 has processed an estimated $100 billion in payments. Data from blockchain analysis firm Elliptic previously reported that A7A5 was involved in over $1 billion of transactions daily.
“Kyrgyzstan officials who play a role in blatantly enabling Russian sanctions evasion activity must face consequences,” the parliamentarians urged, calling for personal sanctions against the head of the Kyrgyzstan central bank, Melis Turgunbaev; General Prosecutor Maksat Asanaliev; and the head of the financial regulations authority, Marat Pirnazarov.
The move follows a Henry Jackson Society report presented to Parliament last month, which warned that hostile states, specifically Russia, are increasingly utilizing cryptocurrency to launder funds, OCCRP reported. The report estimates $350 billion has been laundered globally between 2005 and 2025.
“The illegal Russian war in Ukraine will only stop when Russia can no longer afford this war,” the letter reads. “This will only happen when our sanctions are biting and crippling.”
Alexander Browder, the researcher behind the report and founder of the Global Cryptocurrency Laundering Database, told OCCRP that the ruble-pegged crypto currency continues to thrive because it can be converted into cash through illicit exchanges, the majority of which are registered in Kyrgyzstan. He identified the U.K.-sanctioned exchanges Grinex and Meer as major facilitators, noting that both the illicit exchanges and the sanctioned issuer of the stablecoin, Old Vector LLC, are registered in the country.
“Kyrgyzstan has been completely uncooperative in taking down this scheme,” Browder said, citing reports that the Kyrgyz presidency allegedly accepted a luxury jet from Ilan Shor, a Moldovan businessman linked to the scheme.
While the MPs are currently focused on personal sanctions, they warned of “sweeping sectoral sanctions” against Kyrgyzstan’s broader economy and trade in goods if the complicity continues. These measures intend to “raise the economic cost for the state apparatus and its surrounding business ecosystem,” according to Browder.
Beyond cryptocurrency laundering, Kyrgyzstan has been accused of aiding Russian sanctions evasion more broadly by facilitating the re-export of restricted goods and imports into Russia.
Following the formal submission of the letter, Browder said he expects the Foreign Secretary to act swiftly. “Russia is able to continue to wage the war in Ukraine because they have money. One of the key ways they get money is by bypassing Western sanctions through cryptocurrency; this loophole needs to be closed.”
