Putin exploiting crypto 'loophole' to evade Western sanctions

With financial sanctions imposed by the UK and other European nations continuing to tighten, Putin has turned to currency in a bid to dodge traditional trade barriers.

Figures reveal that the global use of cryptocurrencies by rogue states - including the likes of Russia and Iran - surged by a whopping 694 per cent in the last year.

That equates to around $100bn (£74bn), according to data released by crypto consultancy Chainalysis.

In 2024, Russia introduced new laws that enabled sanctions evasion using cryptocurrency, with a ruble-backed stablecoin (a type of cryptocurrency) named A7A5 unveiled in February 2025.

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Statistics reveal that the coin has now been involved in more than $93bn worth of transactions in under a year, signalling a surge in demand for the sanctions busting currency.

It comes as further statistics reveal that sanctions evasion has become the largest area of crypto crime, having soared by around 162 per cent in the last year.

That equates to a record $154bn in transactions recorded to illicit addresses during that period.

Speaking with The Telegraph, Andrew Fierman, of Chainalysis, highlighted that the true figures are likely to be even higher.

The surge in crypto's popularity in Russia comes as the Russian flagged Marinera was seized by US forces with help from the UK.

A separate operation saw the M/T Sophia tanker was apprehended by the US military in a pre-dawn operation on Wednesday.

Part of Putin's 'Shadow Fleet' of vessels that attempt to evade sanctions, the ship was seized on Wednesday for "conducting illicit activities in the Caribbean Sea," according to American officials.