TLDR
- The European Union is preparing sanctions against A7A5, a Russian ruble-backed stablecoin worth $500 million that has become the world’s largest non-dollar stablecoin
- The proposed sanctions would ban EU organizations and individuals from using the token directly or through third parties
- Several banks in Russia, Belarus and Central Asia face potential sanctions for helping sanctioned entities conduct crypto transactions
- A7A5’s market cap jumped 250% in one day on September 26, reaching $491 million after earlier EU crypto sanctions were announced
- The token was launched by Moldovan banker Ilan Shor and Russian state bank Promsvyazbank, with nearly 80% of transactions routed through China
The European Union is moving forward with plans to sanction A7A5, a Russian ruble-backed stablecoin that has grown to become the largest non-US dollar stablecoin in the world. The token currently holds a market capitalization of approximately $500 million.
The European Union has proposed imposing sanctions on A7A5, a ruble-backed stablecoin tied to sanctioned Russian actors https://t.co/4vNZ50plrN
— Bloomberg (@business) October 6, 2025
The proposed sanctions would prevent EU-based organizations and individuals from using the token. This includes both direct transactions and those conducted through third parties.
Several banks in Russia, Belarus and Central Asia are also facing potential sanctions. These institutions are accused of enabling sanctioned entities to conduct crypto-related transactions.
A7A5 was launched in February 2025 on the Ethereum and Tron networks. The project was created by Moldovan banker Ilan Shor and Russia’s state-owned lender Promsvyazbank.
The token is backed by fiat deposits held in banks within Kyrgyzstan’s network. The project has presented itself as a tool for financial independence from the dollar system.
The stablecoin’s market cap experienced a dramatic increase on September 26. It surged from around $140 million to over $491 million in a single day, representing a 250% jump.
This spike occurred one week after the EU announced sanctions on September 19 against crypto platforms. Those sanctions blocked all transactions for Russian residents and restricted dealings with foreign banks tied to Russia’s crypto sector.
A7A5 now represents roughly 43% of the total $1.2 billion market cap of non-US dollar stablecoins. Circle’s euro-pegged EURC holds the second position with a market capitalization of around $255 million.
Geographic Distribution of Transactions
Research from the Centre for Information Resilience found that nearly 80% of A7A5 transactions are routed through China. This suggests the token plays a role in facilitating trade between Chinese and Russian-linked businesses.
The report also found evidence of A7A5 expanding into African markets. The project has established operational bases in Nigeria and Zimbabwe.
Western regulators have linked the token to sanctioned Russian entities. Blockchain investigations have connected its operations to Grinex, an exchange reportedly created to replace Garantex, a Moscow-based platform previously sanctioned by the US Treasury.
International Coordination
The EU sanctions follow similar actions taken by the United Kingdom and United States in August 2024. Those restrictions targeted parts of Russia’s financial sector allegedly used to bypass Western sanctions.
The US and UK sanctions included the Capital Bank of Central Asia and its director Kantemir Chalbayev. Kyrgyzstan crypto exchanges Grinex and Meer were also blacklisted.
The proposed EU sanctions require approval from all 27 member states. The sanctions could still be amended or changed before implementation.
A7A5 appeared at the Token2049 conference in Singapore despite sanctions and a ban by Singapore authorities. Executive Oleg Ogienko spoke on stage at the event.
