The European Union has unleashed its 19th package of EU sanctions, targeting the Russian ruble-backed A7A5 stablecoin and other Russian cryptocurrency platforms.
This is the first the EU has imposed crypto related sanctions on Russia since the Ukraine conflict erupted.
Previously the EU has sanctioned countries like Belarus for its support of Russia against the war in Ukraine and Belarus has also turned to crypto.
What do the new EU sanctions mean for Russia?
Adopted on October 23, 2025, the new EU sanctions aim to dismantle Moscow’s efforts to evade financial restrictions through digital assets, signaling EU’s economic warfare against Russia.
The European Council is of the opinion that Russia has increasingly leaned on cryptocurrencies to bypass EU sanctions, with digital platforms becoming a lifeline for its sanctioned energy firms and banks.
The A7A5 stablecoin pegged to the Russian currency is perceived as a “prominent tool” for financing Russia’s war efforts. The carpet ban the A7A5 now faces showcases the EU’s decisive action to choke off Russia’s illicit financial channels.
The “Recent activity has evidenced Russia’s increasing use of crypto in circumventing EU sanctions,” the European Council said commenting on the EU sanctions.
Meanwhile, the council added that digital currencies like Bitcoin and Tether’s USDT have facilitated tens of millions in monthly payments for Russian oil companies.
They believe these transactions have allowed Moscow to skirt restrictions, funneling funds through crypto exchanges to sustain its economy amidst global isolation.
“We have just adopted our 19th package of EU sanctions,” declared Kaja Kallas, the EU’s high representative for foreign affairs and security policy.
“It targets Russian energy, banks, crypto exchanges, and entities in China, among others.”
Interestingly, the EU sanctions package doesn’t stop at digital assets.
It also targets eight banks and oil traders in China, Kyrgyzstan, Tajikistan, Hong Kong, and the United Arab Emirates, accused of aiding Russia in dodging previous restrictions.
By freezing transactions with these entities, the EU aims to disrupt the shadowy networks enabling Moscow’s financial maneuvers.
Furthemore, the new sanctions restrict the distribution of crypto payment software and limit the movements of Russian diplomats to counter destabilization efforts.
The focus on the A7A5 stablecoin
The focus on the A7A5 stablecoin stems from its role in facilitating payments for Russia’s war machine.
The EU first proposed blocking Russian crypto platforms on September 19, 2025, with discussions zeroing in on A7A5 due to its prominence in illicit transactions.
The stablecoin’s Kyrgyz issuer and associated platforms now face severe restrictions, effectively cutting off a key financial artery for Moscow.
By targeting cryptocurrencies and their enablers, the EU is pretty much closing the gap on Moscow’s financial lifelines.
