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The European Union (EU) is considering sanctions against a Russian-backed ruble-backed stablecoin called A7A5, which is the world’s largest non-US stablecoin.
According to a Bloomberg report which cite documents related to the proposal, the sanction would prohibit EU-based organizations and individuals from engaging directly with the token or indirectly through third-party platforms.
The proposed sanctions will require the support of all 27 member states before receiving approval. The proposed sanctions could also be modified or amended before implementation, the report added.
Access to EU Block crypto for Russian users
The proposed action is part of the EU’s broader strategy to crack down on financial instruments that have helped Russia circumvent Western sanctions.
It also follows sanctions imposed earlier this year in September, which blocked transactions for Russian residents. New limits were placed on interactions with foreign banks that were also linked to the Russian crypto sector.
Multiple financial institutions in Belarus, Central Asia and Russia are also facing scrutiny from authorities, who believe these banks facilitated sanctioned crypto-related activity. This includes the movement of assets linked to blacklisted entities.
However, crypto is just one of the transactional vehicles used by Russia to evade Western sanctions.
Global Risk Advisory Center Integrity Risk International said Russia has also used hundreds of ships to smuggle sanctioned goods, hiding the origins of its oil and conducting intermediary trade in other countries. Additionally, Russia also uses its illicit gold trades to launder money.
EU joins other nations in sanctioning Russia
If its sanctions are approved, the EU will join the United States and the United Kingdom which already imposed similar sanctions against Russia in August.
Both nations’ sanctions were imposed on parts of the financial sector believed to have been used by Russia to evade Western sanctions. Among those targeted by the sanctions are the Capital Bank of Central Asia and its director Kantemir Chalbayev.
Kyrgyzstan-based crypto exchanges Grinex and Meer have also been blacklisted along with entities that have been linked to the infrastructure powering the ruble-backed A7A5 stablecoin.
A7A5 Stablecoin Market Cap Rises After EU Bans
A7A5 was deployed on the Ethereum and Tron networks in February this year by a Moldovan banker named Ilan Shor and Promsvyazbank, which is the Russian state lender.
The token was introduced as a “digital ruble” which was backed by Fiat deposits in Kyrgyz banks. It also offered holders daily passive income equivalent to half the interest on these deposits.
An investigation carried out by the Financial time Using on-chain data shows that over $6 billion in transactions have taken place using A7A5 stablecoins. The investigation also found that parts of its procurement were “deleted and recreated” to obscure sanctions links.
About a week after the EU announced its sanctions against several crypto platforms, the capitalization of the stablecoin A7A5 skyrocketed. On September 26, the stablecoin’s value rose from around $140 million to over $491 million, marking a 250% jump in a single day.
It has since continued to rise and stands at around $507.41 million as of 5:34 a.m. EST, according to data from Coinmarketcap.
A7A5 Cap
Over the past 24 hours, there was also an over 131% spike in the token’s trading volume to $8.03,000.
The current market cap of A7A5 represents approximately 40.67% of the capitalization of non-US etalcoins, data from DeFillama shows.
The largest non-US stablecoin is Circle’s Eurc, which has a market capitalization of approximately $253.62 million.
Despite all the sanctions and Singapore’s ban, members of the token’s parent company appeared at the Token2049 conference. The company was also a “Platinum Sponsor” of the event and also hosted a booth,
📍A7A5 AT TOKEN2049: How non-USD stablecoins are reshaping global finance
At the flagship crypto conference in Singapore, A7A5 presented a strategic opinion on the future of stablecoins. Key points from the speech of Oleg Ogienko, Director of International Development:
🔵 by 2028,… pic.twitter.com/hkf5adehn9
– A7A5 (@A7A5Official) October 2, 2025
Company executive Oleg Ogienko also spoke on stage.
However, the company and its representatives were later removed from the event and its website after the Token2049 team was confronted backlash of the crypto community.
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