The U.S. Treasury Department expands sanctions on Russian payment platform A7, accusing it of helping Iran circumvent sanctions

The U.S. Treasury Department expands sanctions on Russian payment platform A7. The picture shows U.S. Treasury Secretary Bessent. (Bloomberg)

The Russian payment platform A7 has recently been subject to expanded sanctions by the United States. The United States accuses it of assisting Iran in evading sanctions and lists this action as part of US President Trump's "Operation Economic Outcast". A7 issued a statement on the 2nd saying that the platform denied any connection with Iran.

According to Reuters, A7 will be established in 2024 by Russia’s Industrial Communications Bank (PSB). As Russia seeks to establish alternative payment systems with major trading partners such as China and India, A7 Network has become the leader in Russia's cross-border payments market. Its business covers payment methods such as cryptocurrencies, gold and non-Western currencies.

The U.S. Treasury Department stated on the 1st that A7 has established a global network of affiliated enterprises to disguise payments related to sanctioned industries and individuals as ordinary commercial activities, and Iran has been using this network.

The U.S. Department of the Treasury announced that it would prohibit anyone from conducting transactions with the A7 Network and its related agent entities, and at the same time extend the sanctions previously imposed on some entities of the A7 Network to the entire A7 Network.

A7 denied any accusations that it had cooperated with Iran or terrorist organizations on the 2nd. A7 emphasized that the platform provides uninterrupted payment and settlement services for the Russian market, which is currently affected by illegal restrictive measures.