UK freezes assets of Russia-linked financial networks evading sanctions

Britain has imposed a new round of sanctions targeting Russian-linked cryptocurrency platforms, banks, and financial networks that it says have been used to circumvent existing restrictions, as part of efforts to disrupt funding streams supporting Moscow’s war in Ukraine.

Announced on Tuesday, May 26, the measures include freezing the assets of designated entities and prohibiting UK firms from processing their payments or maintaining correspondent banking relationships with them.

The sanctions focus on what British authorities described as “shadow financial systems” that underpin Russia’s war economy. Among the key targets is the Kremlin-backed A7 network, which London said has been used to route funds, finance procurement activities, and exploit foreign banking systems in order to bypass sanctions.

The package also extends to cryptocurrency exchanges and companies operating platforms tailored to Russia-related financial flows. These include a bank based in Kyrgyzstan, as well as multiple firms registered in jurisdictions such as Georgia and the United Arab Emirates. Several individuals linked to these networks have also been designated.

British officials said the action is part of a broader effort to cut off financial channels sustaining Russia’s military campaign.

Britain said it was "tracking down and shutting off" payment routes fuelling Moscow's invasion of Ukraine.

Foreign Minister Yvette Cooper underscored the government’s position, stating: "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 Russian embassy in London did not immediately respond to a request for comment.

The latest measures come less than a week after Britain announced it would delay implementing a ban on imports of diesel and jet fuel derived from Russian crude refined in third countries. Officials said the postponement was intended to ease supply pressures and should be viewed as a phased implementation rather than a relaxation of sanctions policy.

By Tamilla Hasanova