Last week the UK Treasury announced their intention to step up pressure on violators of sanctions aimed at Russia by doubling the maximum fine for those found guilty of evading financial restrictions.

Previously, the maximum penalty available to the Office of Financial Sanctions Implementation (OFSI) was set at half the amount obtained through the violation; now it can reach 100%. 

Chancellor of the Exchequer, John Healey, justified the decision by citing the need to increase the country’s economic pressure on Moscow: 

“The UK and our allies must step up our international cooperation to expose sanctions evasion and disrupt the financial networks fuelling Russia’s aggression.” 

The National Crime Agency (NCA) has directed banks, payment processors and cryptocurrency firms to review transactions associated with the a7 payment network which is suspected of facilitating Russian sanctions evasion.  

What is the a7 payment network?

The a7 payment network is a state-backed Russian financial platform created to help businesses excluded from the formal banking system bypass Western sanctions and process cross-border payments.

The a7 Network relies on third-country financial institutions, and, in turn, the illicit use of the international financial system to complete cross-border transactions and circumvent sanctions. Within its first year of operating, a7 claims to have settled more than $86 billion of transactions.

How does the a7 network operate?

Various methods are used by the network to achieve its goals including:

• Shell Companies: Money is moved through a network of shell companies in places such as Kyrgyzstan, Hong Kong and the United Arab Emirates.


• Crypto Rails: The a7 network utilises digital assets and ruble-backed stablecoins like A7A5, swapping them for major stablecoins like Tether to pay foreign suppliers.


• Obscuring Transactions: The system relies on multi-layered corporate arrangements and digital tools to hide the real purpose of cross-border transfers from international banks.

In May Russia-linked cryptocurrency platforms, banks and financial networks believed to be used to bypass sanctions, were targeted by government who froze their ⁠assets and ​barred UK firms from processing payments and holding ​correspondent banking ties. 

New sanctions were also announced this month targeting Russian ships, banks and industrial companies. Since the start of the year the sanctions list has grown by 500 companies and individuals.

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