Stablecoin A7a5 loses ruble pegs after sanctions in us and UK

The Kyrgyzstan-issued Stablecoin A7A5 lost its peg to the Russian ruble after being targeted for new sanctions by the US and the UK.

The team behind the project announced through social media that it will replace Crypto’s smart contracts with new ones to achieve “fair and accurate pricing.”

A7A5 replaces smart contracts when Stablecoin prices drop

The Ruble-backed A7A5 issued by a company registered by Kyrgyzstan, temporarily lost its PEG on Russian Fiat currency following the imposition of new sanctions by entities related to Stablecoin and British authorities.

“On the evening of August 21st, the A7A5 Stablecoin percentage fell immediately to 99% of its nominal value (1 A7A5 = 1 Rub).

Partial price recovery was later observed, but the red zone remained in the red zone of about 0.60 rubles per token, the major Russian crypto news outlet added.

Also on Friday, the @a7a5official telegram channel announced the end of the WA7A5 smart contract, explaining that the current rates do not reflect the market value of the digital assets.

X’s @A7A5OFFICIAL account posted the same update and advised users to refrain from trading old contracts before being launched and listed on Saturday to avoid loss of new contracts.

🚨WA7A5 contract update
The old WA7A5 contract has been discontinued. The current rates no longer reflect market prices and will no longer be cited.
Important: Do not run your business with an old contract. This could lead to loss of funds.
📌Tomorrow…

– A7A5 (@a7a5official) August 22, 2025

The author of this message has promised to exchange the old tokens in the holder for the new token based on a balanced snapshot taken at 18:57:59 GMT+3 on August 21, 2025. He also emphasized that the new contract will “ensure fair and accurate pricing.”

According to data from CoinmarketCap, on the morning of August 23rd, Stablecoin was trading for around $0.012.

A7A5 7-day price chart, source: CoinMarketCap.

Changes occur after new sanctions from London and Washington

Since its release in early 2025, the Louvre portrayed A7A5 has been the subject of suspicions being used by Russian actors to avoid Western sanctions imposed on wars in Ukraine.

Created by A7, a Russian company owned by Russian passport Ilan Shor and the fleeing Moldovan Oligarhi, the A7 is issued as a “completely independent” project by the old vectors registered by Kyrgyzstan.

The cryptocurrency is also linked to Kyrgyzstan-based Crypto Exchange Grinex, the successor to Russian coin trading platform Garantex, which went offline for its US-led business in March.

As soon as Garantex was shut down, Grinex began processing the A7A5 drawer. According to an article in the Financial Times, Stablecoin was used to travel over $9 billion in four months.

Elliptic, a chain analysis company, claims that more than $1 billion is transferred daily through Stablecoin. Blockchain intelligence company TRM Lab has been concluded in a report.

“The Kyrgyzstan registered exchange repeatedly promoted transactions related to authorized Russian entities.”

In mid-August, the US Foreign Assets Agency (OFAC) imposed sanctions on several Russian companies and individuals related to the codes drawn by the Louvre. Among them were A7 and its subsidiaries, and the old Vector.

Russian businessman Sergey Mendeleev, co-founder of Garantex, and other cryptographic platforms associated with him have also been approved. The State Department and Treasury Department have awarded the head of Garantex executives a $6 million bounty.

Later this month, the UK also approved old vectors in a move that disrupts the “dangerous crypto network” that London believes is using to fund war efforts in Ukraine.

Two of Kyrgyzstan’s traditional financial institutions, Capital Bank and Kelemet Bank, were also one of the targeted organizations, and were related entities and officials.

This led Central Asian Nation President Sadir Zhaparov this week to urge President Donald Trump and British Prime Minister Kiel Starmer to avoid “economic politicization.”