More than 20 UK MPs and peers have urged the foreign secretary to target Kyrgyzstan officials they say are helping Russia evade international sanctions by hosting infrastructure for a ruble‑pegged stablecoin called A7A5.
What’s being alleged
- The group wants personal sanctions imposed on three senior Kyrgyz figures: central bank head Melis Turgunbaev; general prosecutor Maksat Asanaliev; and Marat Pirnazarov, head of the financial regulator. The letter argues these officials have enabled institutions and services that allow sanctioned Russian entities to keep moving funds.
- A7A5, a stablecoin pegged to the Russian rouble and linked to Promsvyazbank (itself under UK sanctions), has reportedly facilitated more than $100bn in transactions and moves over $1bn a day, according to the MPs’ letter. The UK, EU and US have imposed sanctions on A7A5 and it is blocked from sale across much of the West, but exchanges in Kyrgyzstan have allegedly continued to sell it for cash.
How A7A5 allegedly circumvents sanctions
- A7A5 can be traded for other cryptocurrencies and eventually converted into dollars and access wider financial rails, creating a pathway out of sanctions‑restricted channels.
- Kyrgyz exchanges such as Grinex and Meer — already sanctioned by the UK — reportedly allowed on‑the‑ground cash purchases of A7A5, keeping the network viable despite Western restrictions.
Voices calling for tougher measures
- Alexander Browder, author of a recent report on stablecoins and sanctions evasion, said: “It’s time to tighten the noose on Russia’s sanctions evasion. Kyrgyzstan shouldn’t be allowed to enable Russia to evade the UK sanctions by harbouring Russian stablecoin operations, which ultimately lead to thousands of Ukrainian deaths.” He described A7A5 as “specifically designed for aiding sanctions evasion technology” and controlled by Russian‑backed actors.
- Chris Coghlan, the Liberal Democrat MP who co‑signed the letter, urged the UK government to “shut down these loopholes now,” calling A7A5 “one mechanism that Russia is using to finance its brutal war of aggression in Ukraine.”
- Former Conservative leader Iain Duncan Smith added that “targeted sanctions must be used to ensure that those who are enabling Russia’s illegal war machine are held accountable.”
Previous action — and why MPs say it’s not enough
- The UK sanctioned several Kyrgyz entities last year, including Grinex and Meer, for providing infrastructure supporting A7A5. The signatories argue that those measures have not stopped the stablecoin’s operations because of cooperation from Kyrgyz financial institutions and authorities that registered and host parts of the network.
- The letter also warns that the company behind A7A5 appears to be expanding into Africa, recruiting staff across the continent to broaden its reach.
Next steps
- The MPs and peers have formally asked the foreign secretary to add the three officials to personal sanctions lists. The letter and comments frame these steps as necessary to choke off financial channels fuelling Russia’s war effort.
Requests for comment
- Melis Turgunbaev, Maksat Asanaliev, Marat Pirnazarov, the A7A5 project and the Foreign, Commonwealth and Development Office were approached for comment.
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