Issued by: Foreign, Commonwealth and Development Office

Crypto and illicit finance networks exploited by Russia to circumvent UK sanctions are being targeted as the government ramps up pressure on Putin’s war machine to support Ukraine.

• UK ramps up pressure on Putin’s war machine with tough new sanctions, targeting crypto networks used to bypass Britain’s sanctions.

• New sanctions also hit the Kremlin-backed A7 network, which actively exploits Kyrgyzstan’s financial systems to channel funds into Russia’s war economy.

• The UK is leading the international effort and adapting its sanctions to stay ahead of Russian evasion, shutting down the payment routes fuelling its war machine against Ukraine.

Crypto and illicit finance networks exploited by Russia to circumvent UK sanctions are being targeted today as the government ramps up pressure on Putin’s war machine to support Ukraine.

Putin’s regime is increasingly feeling the pressure on the economy from sanctions, and on the battlefield from Ukraine. This month [May 2026], Russia slashed its economic growth forecast for this year from 1.3% to just 0.4%, and halved its forecast for 2027.

As existing sanctions continue to bite, the Kremlin has increasingly turned to dark networks and shadow financial systems to bypass legal restrictions. Today’s action shows the UK is moving faster and further than ever before to clamp down on these routes and adapt its approach to stay ahead of Russian evasion tactics.

The UK has today announced a new package of sanctions targeting cryptocurrency exchanges and the ‘A7 network’, used by Russia to evade existing restrictions and channel funds to fuel its barbaric war against Ukraine. These sanctions will come into force immediately.

Foreign Secretary, Yvette Cooper said:

"If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.

"The UK is adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions. We are going after the infrastructure that underpins its war economy at the same time as Ukraine is increasing the pressure on Russia on the battlefield.

"We are tracking down and shutting off the financial lifelines that sustain Putin’s war machine. There will be no safe havens for those enabling Russia’s aggression.

"We will continue to act fast and decisively, alongside our allies, to expose, disrupt and dismantle these networks, and ensure those enabling Russia’s aggression face consequences."

The A7 network is a Kremlin-backed system designed to bypass Western sanctions, finance military procurement, and process funds from the sale of oil to fund its war economy. The network claimed to have moved more than $90 billion last year – equivalent to roughly half of Russia’s yearly military expenditure.

Today’s package of 18 designations directly targets Russia’s illicit financial infrastructure used to move funds, procure goods, and sustain its war.

New measures also hit key A7-linked individuals. This gang is using a Kyrgyz bank suspected of facilitating payments for the network, alongside a major global cryptocurrency exchange that we suspect has channelled over $1.5 billion back into the Kremlin’s hands. We are also targeting 3 Georgian companies operating Russia focused exchanges seeking to evade sanctions.

Russia’s unprovoked and illegal invasion of Ukraine and continued strikes hitting innocent civilians and vital infrastructure has shattered peace in Europe. A threat to European security is a threat to our security at home, but through UK sanctions we are severing Putin’s access to vital cashflows and sending a clear message that the UK stands firmly in defence of our shared values and Britain’s safety and stability.

Today’s announcements marks a further step in the UK’s sustained effort to erode Russia’s ability to fund its illegal full scale invasion, ramping up pressure on Putin’s war chest. To date the UK has sanctioned over 3,300 individuals, businesses and ships meaning Russia’s war economy is creaking - having lost over $450 billion due to international sanctions, the equivalent of four years of funding for Putin’s illegal war.

As Russia seeks to expand these financial networks globally, the UK is leading efforts to disrupt them, working with allies to protect the integrity of the international financial system and support Ukraine for as long as it takes.

As long as the killing in Ukraine continues, the UK and its allies stand ready to ratchet up pressure on Russia and will continue to strengthen sanctions at every opportunity.

Background

• view the full List of Russia sanctions designations, 26 May 2026 - GOV.UK: [https://www.gov.uk/government/publications/list-of-russia-sanctions-designations-26-may-2026]

• view the full UK Sanctions List: [https://www.gov.uk/government/publications/the-uk-sanctions-list]

Tags

More Like This

UK cracks down on Russian oil sector as revenues plummet

New UK sanctions hit the money, oil and supply chains fuelling Russia's war

UK announces major sanctions in support of Ukraine

UK turns the screw on Putin as allies unite behind Ukraine

UK cracks down on Russia’s exploitation of vulnerable migrants and deadly drone capability

UK announces largest sanctions package against Russia since 2022

New UK sanctions target Kremlin war chest, propagandists and torturers

UK and EU strike Russian cyber networks with new sanctions