Sanctions Strangle A7A5, Ruble-Pegged Stablecoin Eclipsed by USDT

A7A5, a ruble-pegged stablecoin issued in Kyrgyzstan and backed by Promsvyazbank (PSB), a Russian state-owned bank sanctioned for serving Russia's defense sector, has seen its transaction volumes plummet by 96% since July 2025.

Launched in January 2025 to bypass Western sanctions, A7A5 allowed Russian businesses to move money beyond the reach of US, UK, and EU sanctions. At its peak, more than $102 billion flowed through it, making it the largest non-dollar stablecoin.

However, coordinated sanctions by the three countries enforced through blockchain analytics stifled the token's growth. The sanctions changed everything for A7A5, as they took effect at the token's boundaries: the exchanges where A7A5 was converted into other assets, particularly USDT.

The collapse of A7A5 can be attributed to three factors: sanctions, Russian cryptoasset regulation, and the inaccessibility of exchange venues. The token's main shareholders are Ilan Shor, a convicted fraudster sanctioned for interfering in Moldovan elections on behalf of Russia, and PSB.