Ukraine widens Russia sanctions to crypto firms and all ruble-backed digital assets

Sanctions update signed by Zelenskyy

The changes were adopted by Ukraine’s National Security and Defense Council and will be implemented through a decree signed by Zelenskyy. Ukrainian authorities said the goal is to make it harder for Moscow to finance its war against Ukraine by using newer financial tools.

Ukraine first introduced the sanctions framework in February 2023, with approval from the Verkhovna Rada. Those earlier measures targeted Russia-based banks, non-bank credit institutions, payment system operators, securities market participants, insurers and investment funds. The sanctions are intended to remain in force for 50 years.

The new amendments were proposed by the National Bank of Ukraine. They extend restrictions to operators of Russian companies involved in digital financial assets, crypto service providers and clearing organizations.

Crypto channels and virtual asset transactions targeted

Under the revised regime, Ukraine will prohibit Russia-linked transactions involving virtual assets, as well as the use of platforms, services or products that facilitate those financial flows. Ukrainian officials say Moscow has been using such systems for cross-border payments in violation of international sanctions.

According to remarks cited by the Kyiv Independent, Ukraine’s chief sanctions officer Vladyslav Vlasiuk said Russia is making increasing use of cryptocurrency infrastructure, ruble-pegged stablecoins and specialized payment platforms for international settlements.

Kyiv says this updated framework is designed not only to match existing sanction-evasion tactics but also to create legal room to block new methods Russia may develop.

Focus on A7A5 and ruble-backed tokens

Vlasiuk pointed to growing activity involving A7A5, a Russian fiat-linked digital currency that has already been sanctioned by the EU and other Western countries. He said the token is used to pay for shipments, including electronic components and other dual-use goods.

Estimates cited in the report suggest that monthly transaction volume tied to such activity exceeds $5 billion. Vlasiuk described A7A5 as one part of a broader financial infrastructure that Russia is building to bypass restrictions in traditional fiat channels.

A7A5 was created by the Russian payments network A7 and is backed by ruble deposits at PSB Bank. Both A7 and PSB are under sanctions. The article says A7 is majority-owned by Moldovan oligarch Ilan Shor, who also holds a Russian passport, and co-owned by PSB. Kyiv has previously alleged that A7 helps facilitate payments for components used in Russian missiles.

The token is issued by Old Vector, an entity registered in Kyrgyzstan. An executive at the issuer said the coin processed more than $100 billion within a year of launching in early 2025.

Broader than the EU package

Ukraine says the amendments bring its sanctions into line with the EU’s 19th and 20th sanctions packages against Russia. Recent EU measures include a full ban on Russia-based crypto platforms, action against a Kyrgyzstan-based entity trading A7A5, and a ban on the ruble-pegged stablecoin RUBx.

Kyiv’s approach is broader. Rather than limiting restrictions to named platforms or individual assets, Ukraine’s measures cover all virtual assets backed by the ruble and extend across Russia’s financial sector as a whole. Ukrainian officials argue that wider coverage should make future sanctions evasion more difficult.

The move reflects a wider shift in sanctions policy as authorities try to address the use of crypto networks, tokenized payment instruments and cross-border digital settlement systems in sanctioned trade.