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The European Union has adopted its 19th sanctions package against Russia, which includes a torrent of new restrictions on energy exports and banks. The organization has announced that it will prohibit all transactions involving the ruble-pegged stablecoin A7A5 starting 25 November 2025.
The measure bans all EU-based financial institutions and virtual asset service providers from facilitating transactions involving A7A5. According to EU sources, the token is viewed as “a prominent tool for financing activities supporting the war of aggression.”
In addition, the EU sanctions block certain Russian banks, energy firms, and entities in Asia and the Middle East suspected of helping Moscow evade restrictions. EU officials emphasized that this prohibition extends to indirect facilitation, including clearing, settlement, or custody of A7A5-linked assets.
Regulators within the European Union are developing compliance frameworks that banks, exchanges, and fintech companies must follow to ensure complete enforcement. The European Central Bank will serve as a coordinator in tracking suspicious flows of ruble-value assets or digital tokens originating from licensed financial institutions.
Launched in early 2025 and backed by deposits at the Russian state-linked bank Promsvyazbank, A7A5 has been linked to funds flows circumventing sanctions, in part via the Kyrgyz exchange Grinex. According to blockchain-analysis firms, by mid-year, the stablecoin had moved tens of billions of dollars globally.
The EU now recognizes that crypto-assets can be used to bypass financial restrictions. Commissioner Maria Luís Albuquerque stated that this sanction round “marks a turning point… crypto is no longer outside the perimeter of accountability.”
Officials added that this step reflects Europe’s growing effort to align digital-asset oversight with existing anti-money-laundering frameworks. The European Commission plans to coordinate with G7 partners to track token transfers linked to sanctioned jurisdictions and to improve blockchain monitoring capacity across member states.
From 25 November, companies in EU member states will have to screen and prohibit transactions with A7A5. Failure to comply with this may result in penalties. Although the scope is ambitious, the analysts cite enforcement difficulties due to the token's decentralized nature and its exposure to platforms outside the EU's legal jurisdiction.
For Russia and its associated actors, the ban removes a specific cryptocurrency channel for cross-border payments. For the EU, it signals a widening of the regulatory net into emerging digital-asset infrastructure supporting sanctioned economies.
