TLDR
- European Union preparing sanctions against A7A5, a $500 million Russian ruble-backed stablecoin
- Proposed measures would prohibit EU citizens and businesses from using the token
- A7A5 market cap surged 250% to $491 million in September after earlier crypto sanctions
- Token controls 43% of non-dollar stablecoin market, surpassing Circle’s EURC
- Research shows 80% of A7A5 transactions flow through China
The European Union is developing sanctions against A7A5, a Russian ruble-backed stablecoin that has become the world’s largest non-dollar stablecoin. The token currently maintains a market capitalization of approximately $500 million.
The proposed sanctions would bar EU organizations and individuals from engaging with the token. The restrictions would apply to both direct transactions and those conducted through intermediaries.
A7A5 launched in February 2025 on the Ethereum and Tron networks. The project was created through a partnership between Moldovan banker Ilan Shor and Promsvyazbank, a Russian state-owned lender.
The stablecoin is backed by fiat deposits held in banks within Kyrgyzstan. The project markets itself as an alternative to dollar-based financial systems.
Market Growth After Sanctions
A7A5 experienced explosive growth on September 26, when its market cap jumped from $140 million to $491 million. The 250% increase occurred one week after the EU announced crypto sanctions on September 19.
Those earlier sanctions blocked transactions for Russian residents and restricted dealings with foreign banks connected to Russia’s crypto sector. The timing of A7A5’s growth raised questions among regulators.
The token now represents 43% of the $1.2 billion non-dollar stablecoin market. Circle’s EURC holds second place with a market cap of $255 million.
Banks in Russia, Belarus and Central Asia are also facing potential EU sanctions. These financial institutions allegedly helped sanctioned entities conduct crypto transactions.
China Connection and Global Expansion
The Centre for Information Resilience released a report showing that 80% of A7A5 transactions are routed through China. This pattern suggests the token facilitates trade between Chinese and Russian-linked businesses.
The stablecoin has expanded operations into African markets. A7A5 has established bases in Nigeria and Zimbabwe, targeting regions open to non-dollar payment systems.
Western regulators have connected A7A5 to sanctioned Russian entities. Blockchain analysis linked the project to Grinex, an exchange allegedly created to replace Garantex after US Treasury sanctions.
International Regulatory Response
The EU sanctions follow actions taken by the United States and United Kingdom in August 2024. Those measures targeted Russia’s financial infrastructure used to circumvent Western restrictions.
US and UK sanctions included the Capital Bank of Central Asia and director Kantemir Chalbayev. Kyrgyzstan exchanges Grinex and Meer were also blacklisted.
The EU requires unanimous approval from all 27 member states for sanctions. The proposed measures may be modified before final implementation.
A7A5 appeared at Singapore’s Token2049 conference despite facing sanctions. Executive Oleg Ogienko presented on stage before organizers removed the project from the event.
The stablecoin’s rapid growth demonstrates how crypto markets are developing along geopolitical lines. A7A5 positions itself as financial resistance against Western currency dominance in digital assets.
