A coalition of British parliament members has called for punitive measures against senior figures in Kyrgyzstan’s financial oversight bodies, accusing them of enabling Russia to bypass international restrictions through a digital currency platform. The group of 26 legislators sent a formal request to Foreign Secretary Yvette Cooper, urging action against those allegedly supporting Moscow’s war efforts in Ukraine.
The platform at the center of the controversy, known as A7A5, has come under Western sanctions for its role in aiding Russian financial transactions. Despite existing restrictions, the lawmakers argue it remains operational and has grown, processing an estimated $100 billion in payments. Blockchain analytics have previously indicated the platform handled over $1 billion daily.
In their correspondence, the MPs targeted specific officials: the head of Kyrgyzstan’s central bank, Melis Turgunbaev; General Prosecutor Maksat Asanaliev; and financial regulation chief Marat Pirnazarov. They argued that any officials facilitating sanctions evasion must face consequences.
The push follows a report from the Henry Jackson Society, which highlighted Russia’s increasing use of cryptocurrencies to launder funds. The report estimates $350 billion has been laundered globally over two decades. The lawmakers emphasized that ending the conflict in Ukraine depends on tightening sanctions to cripple Russia’s financial capabilities.
Researcher Alexander Browder, who compiled the report, noted that the ruble-pegged cryptocurrency continues to thrive due to conversion into cash through illicit exchanges, many registered in Kyrgyzstan. He pointed to sanctioned exchanges Grinex and Meer as key facilitators, alongside the stablecoin issuer Old Vector LLC.
Browder criticized Kyrgyzstan’s lack of cooperation, citing reports of a luxury jet allegedly accepted by the presidency from a Moldovan businessman linked to the scheme. The MPs warned of broader sectoral sanctions if complicity persists, aiming to raise economic costs for the state and its business environment.
Beyond cryptocurrency, Kyrgyzstan has faced accusations of facilitating the re-export of restricted goods to Russia. Browder expects swift action from the Foreign Secretary, stating that closing this loophole is critical to limiting Russia’s ability to fund its war in Ukraine.