USA Imposes Sanctions on A7 Network, Which Supplied Components and Equipment to Russia’s Military-Industrial Complex

The U.S. Department of the Treasury has imposed sanctions against the A7 shadow banking network, which is linked to Russia and Iran.

This was reported on the department’s website.

The Office of Foreign Assets Control (OFAC) added the A7 network to its sanctions list as a transnational criminal organization.

According to the department, the network is headed by Ilan Shor, a Moldovan-Israeli oligarch who is already under sanctions and has been convicted, and the system itself was used to circumvent sanctions and launder money.

The A7 network was used to finance the Iranian Revolutionary Guard Corps and the Hamas group, as well as to conduct transactions related to the sale of Iranian oil and the purchase of weapons.

The network used intermediaries in third countries, fictitious trade documents, and hidden VPN networks to funnel money through the international financial system.

All assets and property of the A7 network in the United States or under the control of U.S. citizens have been frozen, and any transactions involving them are prohibited under penalty of civil and criminal sanctions.

As a reminder, A7 developed a large-scale network of front companies that allows Russia to circumvent Western sanctions and purchase goods for its military-industrial complex

According to Western intelligence reports, Shor oversees these activities under the direct supervision of the Russian president’s administration.

Kyrgyzstan has long served as the main financial hub for the A7 schemes. Over $100 million in U.S. dollars and Chinese yuan passed through the bank accounts of local front companies.

To throw international oversight off track, the network created a special AI-based program that automatically forged invoices and customs documents. Instead of dual-use electronics, the documents listed civilian goods, such as car mats or light boxes.

Among the purchased goods, investigators discovered steel production equipment from the Chinese company Xi’an Heavy Equipment, which is used in the manufacture of ammunition and armor. Payments were also made for Nvidia servers for AI development and video components for Walksnail drones.