London, May 26 (PTI) Crypto networks used by Russia to circumvent UK sanctions have been included in a fresh wave of crackdowns on illicit finance, the British government said on Tuesday.
The Foreign, Commonwealth and Development Office (FCDO) said the action ramps up pressure against Russian President Vladimir Putin’s “war machine” and in support of Ukraine.
The latest package of sanctions target cryptocurrency exchanges and the "A7 network", allegedly used by Russia to evade existing restrictions and channel funds towards its war in Europe.
“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken," said UK Foreign Secretary Yvette Cooper.
“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," she said.
The Cabinet minister pledged to act “fast and decisively” alongside UK allies to “expose, disrupt and dismantle” such networks and ensure those enabling Russia’s aggression “face consequences”.
The intervention follows UK government claims that the Russian regime is increasingly turning to dark networks and shadow financial systems to bypass legal restrictions.
“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 dollars last year – equivalent to roughly half of Russia’s yearly military expenditure,” the FCDO stated.
The new package announced this week covers 18 sanctions that the ministry claims directly target Russia’s illicit financial infrastructure used to move funds, procure goods and sustain the Russia-Ukraine 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 dollars back into the Kremlin’s hands," the FCDO noted.
Three Georgian companies operating Russia-focused exchanges and reportedly seeking to evade sanctions are also targeted by the latest measures.
“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," added FCDO.
To date, the British government claims to have sanctioned over 3,300 individuals, businesses and ships linked with Russia’s war economy.
The UK Foreign Office believes Putin’s regime is increasingly feeling the pressure of the sanctions on its economy, slashing its economic growth forecast for this year from 1.3 per cent to just 0.4 per cent and halving its forecast for 2027.