The British government announced a new sanctions package to increase pressure on Russia’s war economy by targeting infrastructure used to move funds, procure goods, and sustain military operations despite existing restrictions. The measures focus on dismantling networks described as enabling backdoor sanctions evasion and illicit financial channels. The package includes 18 new designations aimed at disrupting crypto-enabled transfers, shadow payment systems, and intermediary networks that help Moscow access restricted goods and maintain defence production. A central focus is the A7 network, described as a political and commercial structure facilitating large-scale sanctions evasion. The A7 network was established in 2024 and is led by Ilan Shor, with Promsvyazbank reported to hold a minority stake.
"The UK is adapting and strengthening our approach to target the evolving tactics Russia is using to evade restrictions. We are going after the infrastructure that underpins its war economy at the same time as Ukraine is increasing the pressure on Russia on the battlefield."
"The latest package includes 18 new designations targeting individuals and entities linked to what the government described as Russia's illicit financial architecture. Officials said the measures are intended to disrupt crypto-enabled transfers, shadow payment systems and intermediary networks that have helped Moscow access restricted goods and sustain defence production."
"A central focus of the sanctions is the so-called A7 network, which monitoring groups have described as a political and commercial structure designed to facilitate large-scale sanctions evasion. The Centre for Information Resilience, a UK-based monitoring organisation, has linked the network to efforts to bypass restrictions on financial flows connected to Russia's defence sector."
"The A7 network was established in 2024 and is led by Israeli-Moldovan businessman Ilan Shor, who was convicted in connection with Moldova's 2014 banking fraud scandal involving the disappearance of around $1 billion from three banks. Promsvyazbank, a Russian state-owned lender that supports the country's defence industry and is itself under UK sanctions, is reported to hold a minority stake in the network."
#uk-sanctions #russia-war-economy #sanctions-evasion-networks #crypto-and-shadow-payments #a7-network
Read at London Business News | Londonlovesbusiness.com
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