FCDO targets Kremlin-backed networks and exchanges accused of channeling billions
The UK’s Foreign, Commonwealth & Development Office designated 18 entities in a new sanctions package targeting cryptocurrency firms and illicit networks used by Russia to circumvent international sanctions and fund its war in Ukraine.
The announcement, made on Tuesday, marks an escalation in the UK’s four-year campaign against Russian financial evasion. Over the past four years, the UK has sanctioned more than 3,300 individuals, businesses, and ships. International sanctions have cost Russia an estimated $450 billion, equivalent to four years of funding for the war effort.
HTX (Huobi Global S.A.), a major cryptocurrency exchange, was among the designated entities. According to the FCDO, HTX is “involved in making available funds, economic resources, goods or technology to individuals and entities in the Russian financial sector.” A crypto exchange suspected of channeling over $1.5 billion to the Kremlin was also targeted.
HTX responded with a statement to Bloomberg: “Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK.”
The package also targets the A7 network, a Kremlin-backed payment system that reportedly exploits Kyrgyzstan’s financial infrastructure to route funds into Russia. A Kyrgyz bank suspected of facilitating A7 network payments was sanctioned as part of the broader action. Three Georgian companies operating Russia-focused exchanges were also designated.
Other entities in the sanctions package include EXMO Exchange Limited, ARVIX Limited Liability Company, RAPIRA GROUP LLC, and AIFORY LLC, all involved in supporting Russia’s financial sector or circumventing sanctions.
Foreign Secretary Yvette Cooper stated: “If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken. We will continue to act fast and decisively, alongside our allies, to expose, disrupt and dismantle these networks, and ensure those enabling Russia’s aggression face consequences.”
The FCDO noted that the Kremlin has “increasingly turned to dark networks and shadow financial systems to bypass legal restrictions.” The UK’s action aligns with broader efforts by the European Commission, which has been exploring measures to prohibit crypto transactions linked to Russia. The EC’s proposal targets successors to Garantex, a Russia-linked cryptocurrency exchange, along with the A7 payments platform and its connected ruble-pegged stablecoin A7A5.
An FCDO spokesperson added: “As long as the killing in Ukraine continues, the UK and its allies stand ready to ratchet up pressure on Russia and will continue to strengthen sanctions at every opportunity.”
