“We don’t engage in illegal activity”: Inside a U.S.-sanctioned stablecoin issuer’s push to build a crypto powerhouse

Oleg Ogienko, the public face of ruble-pegged stablecoin issuer A7A5, says he is prepared to debate anyone who claims his company operates outside the law.

Speaking to CoinDesk on the sidelines of Consensus Hong Kong, Ogienko — A7A5’s director for Regulatory and Overseas Affairs — described the token as a fast-growing cross-border payments rail built to help businesses continue trading despite sanctions pressure.

A7A5, a ruble-denominated stablecoin incorporated in Kyrgyzstan, expanded more quickly last year than market leaders Tether and Circle’s USDC, according to industry data. Ogienko said the company operates in strict accordance with Kyrgyz law and maintains compliance standards comparable to other stablecoin issuers.

“We are fully compliant with the regulations of Kyrgyzstan. We do not do illegal things,” he said, pointing to regular audits, know-your-customer checks and embedded anti-money-laundering controls. He added that the firm does not violate Financial Action Task Force principles.

However, A7A5’s broader structure presents complications. Its affiliated entities, Old Vector LLC and A7 LLC, as well as reserve-holding lender Promsvyazbank, are subject to sanctions imposed by the U.S. Department of the Treasury. Those restrictions effectively cut the entities off from the U.S. dollar-based financial system, which underpins much of global trade.

While that limits interaction with U.S.-linked institutions, Ogienko noted that facilitating trade for Russian companies navigating sanctions is not illegal under Kyrgyz or Russian law. He framed A7A5 as infrastructure serving businesses in jurisdictions where such activity remains permissible.

The stablecoin has become a conduit for cross-border payments for Russian users facing banking constraints and, through decentralized finance protocols, a pathway to dollar stablecoin liquidity without directly holding dollar-backed tokens. Ogienko suggested that sanctions themselves have fueled demand.

Data from analytics firm Artemis show A7A5 added nearly $90 billion in circulating supply last year, compared with roughly $49 billion for USDT and about $31 billion for USDC.

Beyond sanctions

Ogienko acknowledged that sanctions create friction and restrict access to some Western goods and services. But he argued they have not halted trade, instead reshaping payment flows and generating demand for alternative settlement tools.

According to him, much of A7A5’s usage comes from companies in Asia, Africa and South America that trade with Russian exporters and importers and require reliable cross-border payment options.

Liquidity remains a challenge. Major centralized exchanges have avoided listing the token due to concerns about secondary sanctions exposure. Decentralized finance pools allow swaps into USDT, though available liquidity remains limited.

Ogienko said he traveled to Hong Kong to meet exchanges and blockchain networks in an effort to broaden partnerships. A7A5 is already live on Tron and Ethereum, and the firm is exploring additional networks to expand access.

Although A7A5 was not an official sponsor at Consensus, its presence at international events has at times sparked unease. At Token2049 in Singapore — organized by Hong Kong-registered BOB Group in a jurisdiction without Russia sanctions — A7A5 appeared as a sponsor before references were later removed following concerns from other participants.

Despite the political sensitivities, Ogienko remains focused on growth. He said the company aims to capture a significant share of Russia’s trade settlements with international partners through A7A5, targeting more than 20% over time.

For now, the token cannot be used domestically in Russia, where lawmakers are still developing stablecoin regulations. Ogienko said his engagement with Russian authorities is consultative, centered on blockchain regulation and financial infrastructure rather than government oversight.

“We’re not politicians. We are traders. We are businessmen,” he said. “We’re open for business cooperation with any country.”

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