The European Union is considering sanctions against the A7A5 stablecoin, which is pegged to the Russian ruble and linked to sanctioned Russian figures, Bloomberg reports, citing documents in its possession.

The proposed restrictions will affect the participation of legal entities from EU countries in any transactions involving this token, which is used to circumvent Western sanctions. Furthermore, several banks in Russia, Belarus, and Central Asian countries that facilitate cryptocurrency transactions with A7A5 could be targeted. These measures are aimed at thwarting Moscow's attempts to use digital assets for financial maneuvering in the face of international pressure.

A7A5, launched in Kyrgyzstan and backed by rubles from accounts at the Russian state-owned bank Promsvyazbank, has already attracted the attention of US and UK regulators, where sanctions have been imposed on platforms associated with it. Despite this, the token has processed billions of dollars in transactions, highlighting its role in the sanctions schemes. The European Commission does not comment on proposals until they are officially approved, but the decision requires unanimity from all EU member states.