UK working to tackle sanctions circumvention

The UK is working to target sanctions circumvention and crypto networks that are being exploited by Russia.

According to the UK government, Russia has turned to the Kyrgyz financial sector to channel money through opaque financial networks, including through the use of cryptocurrencies and this has created a convoluted scheme to evade sanctions imposed by the UK and its partners.

The recent action is aimed at closing in on the Kyrgyzstan-based Capital Bank, and its director Kantemir Chalbayev, which Russia uses to pay for military goods.

Sanctions have also been imposed on the Grinex and Meer cryptocurrency exchanges, 'the infrastructure behind a new rouble-backed cryptocurrency token A7A5, which has moved $9.3bn on a dedicated crypto exchange in just four months and is specifically designed as an attempt to evade western sanctions'.

Sanctions Minister, Stephen Doughty said: "If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks – they are sorely mistaken. 

"These sanctions keep up the pressure on Putin at a critical time and crack down on the illicit networks being used to funnel money into his war chest.

"Alongside our allies, we will continue to support the US-led drive to end this illegal war and secure a just and lasting peace."