A new cryptocurrency token launched in Kyrgyzstan has facilitated $9.3 billion in transactions within just four months, providing Russia with a potential tool to bypass international sanctions, the Financial Times reported Wednesday.
The stablecoin, named A7A5 and pegged to the Russian ruble, was introduced in February alongside the launch of the Grinex exchange, which supports trading in A7A5, Russian rubles, and Tether—a widely used dollar-backed stablecoin.
According to the FT, there are currently 12 billion A7A5 tokens in circulation, with a market value of approximately $156 million. Despite this relatively modest valuation, daily wallet activity linked to Grinex suggests a small network of users is conducting high-frequency transactions far exceeding the token’s nominal volume, contributing to the $9.3 billion total in aggregated trades.
The stablecoin is backed by ruble deposits at Promsvyazbank, a major Russian bank deeply integrated with the country’s defense sector. Promsvyazbank is under heavy sanctions from the United States, United Kingdom, and European Union.
A7, the issuing company behind A7A5, is partially owned by Ilan Şor—a Moldovan businessman convicted of embezzling $1 billion in a scandal that nearly bankrupted Moldova’s banking system. Şor fled the country while under house arrest and later obtained Russian citizenship. He has been sanctioned by the EU, U.K., and Canada for his alleged involvement in political interference and illicit financial activities.
Şor remains active in Moldovan politics. Authorities in Chisinau have accused him of bankrolling multiple political parties and orchestrating vote-buying campaigns during recent presidential and constitutional referendum elections—allegations he has dismissed as an “absurd spectacle.”
Russia’s growing interest in crypto as a means to bypass the SWIFT financial messaging network and circumvent sanctions has drawn global scrutiny. Analysts, including Eliza Thomas of the London-based Center for Information Resilience (CIR), say Russian officials have long explored developing their own stablecoin for large-scale evasion efforts.
A recent CIR report alleged that A7A5 is also being used to finance Russian political interference abroad. Investigators discovered that domains associated with covert operations in Moldova shared technical infrastructure, including IP addresses, with A7 and A7A5 websites.
In a statement to FT, A7A5 said it had collaborated with A7 in the early stages but later distanced itself, citing “different visions of development strategy.”
When A7 was registered in September 2024, Şor held a 51% stake while Promsvyazbank held the remaining 49%. The company describes itself as “an ambitious financial sector project launched by a major state bank.”
Leonid Shumakov, head of A7A5, told the FT that Kyrgyzstan was chosen as the token’s base of operations because it offers a “friendly jurisdiction that is not subject to sanctions.”
“It is no secret that this jurisdiction is currently helping a lot to cope with the pressure [Russia] is under,” Shumakov added.
