A cryptocurrency token named A7A5, launched in Kyrgyzstan to assist Russia in executing cross-border payments while circumventing international sanctions, has facilitated $9.3 billion in transactions in just four months, according to a report by the Financial Times.
Launched in February, this stablecoin is linked to the Russian ruble and has associations with Ilan Şor, a Moldovan businessman under sanctions.
A7A5’s introduction coincided with the establishment of Grinex, a new cryptocurrency exchange that allows trading in A7A5, Russian rubles, and Tether, a widely-used stablecoin pegged to the US dollar.
Currently, there are 12 billion A7A5 tokens in circulation, valued at around $156 million, as reported by FT.
An analysis of cryptocurrency wallets connected to Grinex revealed that a relatively small group of users frequently conducts transfers that, cumulatively, significantly exceed the coin’s transaction volume.
Overall, the transactions involving A7A5 have totaled $9.3 billion.
The stablecoin is backed by ruble deposits held at Promsvyazbank, which is a significant lender to Russia’s defense industry and is facing stringent sanctions from the U.S., the U.K., and the EU.
The issuing company of A7A5, co-owned by Ilan Şor, is under scrutiny due to Şor’s conviction for embezzling $1 billion from Moldova’s banking system, which nearly led to the country’s financial collapse. After escaping house arrest in Moldova, Şor acquired Russian citizenship.
He remains an influential figure in Moldovan politics. Chisinau authorities have accused him of financing various political parties and engaging in vote-buying during the latest presidential elections and constitutional referendums.
Şor has dismissed these allegations as an “absurd spectacle.”
He is currently subject to sanctions from the EU, U.K., and Canada.
The rise of cryptocurrency has emerged as a strategy for Russia to evade sanctions and to bypass the exclusion of Russian banks from the SWIFT international finance messaging system.
Eliza Thomas, a senior investigator at the Center for Information Resilience (CIR) in London, informed FT that discussions among Russian business leaders and officials about leveraging cryptocurrency to broadly evade sanctions, especially by creating their own stablecoin, have been ongoing.
A recent report by CIR revealed that Moscow might also be using A7A5 to fund political interference in other countries. The report indicated that multiple domains linked to these activities in Moldova shared IP addresses with those of A7 and A7A5.
In a statement to FT, A7A5 mentioned that it had initially collaborated with A7’s technical team but decided to fully part ways due to differing strategic visions.
A January report from Bloomberg noted that when A7 was registered in September 2024, Şor owned a controlling 51% stake, while Promsvyazbank held the remaining 49%. The company characterizes itself as “an ambitious financial sector project initiated by a leading state bank.”
Leonid Shumakov, the head of A7A5, explained to FT that Kyrgyzstan was chosen as the base because it is a “friendly jurisdiction that is not subject to sanctions.”
“It’s well-known that this jurisdiction is currently providing significant assistance to alleviate the pressure [Russia] is experiencing,” he concluded.
