NYT details how Moscow firm A7 helps Russia evade Western sanctions

  • New York Times detailed A7’s role in helping Russian businesses evade Western sanctions.
  • A Kyrgyz government entity paid $1 million for goods masking a drone-parts purchase.
  • A7 used shell companies across Asia, Africa and elsewhere to route international payments.

A New York Times investigation describes how A7, a Moscow-based financial services firm, helps Russian businesses circumvent Western sanctions through shell companies, cryptocurrency and an internal application used to falsify trade records. In one example, the Trading Company of the Kyrgyz Republic, an official government entity, paid $1 million for car floor mats, auto body polish, safety glasses and rope, while the funds were actually used to acquire drone parts that support Russia’s war effort. The scheme took place early last year and was one of thousands of sanctions-evasion transactions attributed to A7. Since Russia’s full-scale invasion of Ukraine in 2022, Russian financial institutions have been largely excluded from the global financial system, including restrictions on dollar access and international bank payments. A7’s network of shell companies in Asia, Africa and elsewhere helps mask purchases and route payments for Russian businesses. The investigation drew on thousands of documents leaked by hackers late last year, internal software analysis, interviews with current and former employees, and business transaction databases.

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