EU Bans Russian A7A5 Stablecoin in Historic Crypto Sanctions Package

The European Union has escalated its financial sanctions against Russia by targeting the A7A5 stablecoin, a ruble-backed digital currency. Effective November 25, 2025, all transactions involving A7A5 will be prohibited across the bloc. The stablecoin, launched in Kyrgyzstan earlier this year, has processed over $70 billion in transactions, with daily volumes exceeding $1 billion.

A7A5's unique structure ties each token to a ruble deposit in Promsvyazbank, a Russian state-owned bank financing defense operations. Its rapid growth—market capitalization surged 250% in a single day to $500 million—reflects its role in circumventing traditional financial sanctions. The EU explicitly labeled it "a prominent tool for financing activities supporting the war of aggression."

Controversy surrounds the stablecoin's ownership. Moldovan businessman Ilan Shor, a convicted fraudster facing election interference charges, holds a majority stake, while Promsvyazbank controls the remainder. This marks the first time a stablecoin has been sanctioned at this scale, signaling regulators' growing focus on crypto-enabled sanctions evasion.