A7 stablecoin helped Russia route billions around sanctions

An investigation found a network built around an A7 ruble‑pegged stablecoin and related crypto channels moved roughly $2 billion a day in Russian foreign trade. The activity routed ruble funds through banks, crypto exchanges and offshore companies to pay foreign sellers and bring goods into Russia.

Under the system, Russian buyers deposit rubles with the A7 payments group. Funds are then transferred to accounts linked to a sanctioned Russian bank, routed into subsidiaries in Kyrgyzstan and used by Kyrgyz intermediaries to buy cryptocurrency on exchanges associated with the network. Affiliated companies in the Middle East and Southeast Asia convert the cryptocurrency into local currencies and pay overseas suppliers, who ship goods to Russia.

The stablecoin, called A7A5, is issued by a firm registered in Kyrgyzstan and is reported to be backed by ruble deposits at the sanctioned bank. The coin was launched in early 2025 and has become a significant non‑dollar stablecoin used by Russian buyers. A senior executive tied to the project acknowledged the group has processed transactions totaling more than $100 billion since launch. The payments group estimates it handles up to 19% of Russian cross‑border transfers.

The network’s ownership links include a majority stake held by a Moldovan oligarch who has a Russian passport and faces criminal charges in his home country. The sanctioned bank that participates in the scheme was formerly known under a different name and is identified in documents as a principal clearing partner. A state development bank is described in the records as providing support to the payments project.

Investigators found names connected to the Federal Security Service among people involved in the industry, including relatives and associates of a former FSB director. The probe traced a wider market for cross‑border settlements to Moscow City, where payment processors operate offices that serve both companies and individuals. More than 20 shell companies tied to the network are active internationally and the payments group employs about 2,000 people.

The investigation collected financial records and internal documents from participants in the payments market. Background files detail how the scheme layers transactions to obscure ruble deposits and uses stablecoins and cryptocurrency conversions to convert value into currencies accepted by foreign sellers.

There are conflicting accounts about the involvement of other prominent figures. An associate denied any connection to the payments group, stating the person is neither a beneficiary nor a shareholder. An industry source described that same figure as providing protection and sponsorship for the operation. The payments group and some of its principals are subject to Western sanctions.

The documents show the network continued to move large sums through offshore and crypto channels despite sanctions that have cut many Russian institutions off from parts of global finance and disconnected some banks from SWIFT.