A7A5: Russia's Cryptocurrency Exchange as a $100 Billion Sanctions Evasion Tool

Russia’s ruble-pegged stablecoin A7A5 has surpassed a transaction volume of 100 billion over the past year, becoming the main tool in Russian crypto exchanges’ strategy to counter Western sanctions. Data published by Elliptic reveal how critical this crypto asset has become for Russia to sustain its cross-border trade activities.

According to Elliptic Data, Transaction Volume Breaks Records

Issued on public blockchains like Ethereum and Tron, A7A5 offers broad traceability thanks to its transparency. According to Elliptic’s January report, over 250,000 transactions occurred among approximately 41,300 wallet addresses in less than a year. The data show that 35,500 accounts currently hold A7A5; this is a significant increase from 14,000 six months ago.

The total exchange trading volume reached $17.3 billion. The main trading pairs were A7A5/ruble ($11.2 billion) and A7A5/USDT ($6.1 billion). This distribution clearly demonstrates that stablecoins serve as a bridge between the ruble and the dollar. Tether’s USDT remains a vital tool for Russian financial actors seeking to evade Western sanctions imposed after the 2022 Ukraine invasion.

Impact of Western Sanctions: Sharp Drop in Daily Trading Volume

Following sanctions by the US, UK, and European Union targeting Russia-related crypto infrastructure, A7A5 activity showed a noticeable slowdown. Elliptic noted that trading volumes, which peaked at over $1.5 billion daily last year, have fallen to around $500 million daily this year. This 67% decline directly reflects the impact of Western policies targeting crypto channels.

There are approximately 42.5 billion A7A5 in circulation, with a dollar value of about $547 million. Since mid-2025, there has been no significant increase in new A7A5 issuance. Elliptic stated, “There are clear signs that demand for A7A5 has stagnated.” Western governments have implemented broad sanctions, including freezing about $250 billion worth of Russian assets by the EU and blocking $35 billion by the UK.

An Elliptic spokesperson said, “Some Russian entities have been placed on sanctions lists because they facilitate sanctions evasion.” Notably, in March 2025, the freezing of USDT held by the Garantex exchange, which was sanctioned in cooperation with Tether and the US Secret Service, demonstrated how much control over crypto channels has been established.

A7A5 as a Remaining Tool for Cross-Border Trade in Russia

Despite the sanctions, A7A5 continues to be an important tool for Russia to maintain its international trade activities. According to Elliptic, within Russia’s extensive crypto ecosystem—serving 20 million users and handling a crypto volume of $376 billion over 12 months—A7A5 is increasingly becoming isolated.

This isolation illustrates how deeply unilateral sanctions have penetrated the crypto market. The issuer addresses of A7A5 remain the only authorities that could be directly sanctioned. Tether has not made an explicit statement regarding whether Western countries have requested the freezing of Russian-linked USDT accounts; however, it is known to freeze USDT accounts upon official legal requests.

Overall, Russia’s crypto ecosystem still shows intense activity, but the observed trend in A7A5 clearly demonstrates the effectiveness of Western control mechanisms in the fintech sector. In this new sanctions era, entering the stablecoin period, activity of Russian crypto exchanges has contracted to cross-border trade.