“We operate within the law”: Behind a U.S.-sanctioned stablecoin issuer’s bid to create a digital-asset empire

Oleg Ogienko, the chief public representative of ruble-backed stablecoin issuer A7A5, says he is willing to publicly challenge allegations that his firm breaches compliance standards.

In an interview with CoinDesk during Consensus Hong Kong, Ogienko positioned A7A5 as a rapidly expanding cross-border settlement network designed to facilitate trade flows under sanctions pressure. The Kyrgyzstan-incorporated issuer of a ruble-denominated stablecoin, he noted, recorded faster supply growth last year than dollar-pegged leaders such as Tether’s USDT and Circle’s USDC.

Ogienko, who serves as director for Regulatory and Overseas Affairs, emphasized that A7A5 operates under Kyrgyz law and maintains formal compliance controls. He cited external audits, know-your-customer onboarding, embedded anti-money-laundering systems and adherence to Financial Action Task Force principles.

“We are fully compliant with the regulations of Kyrgyzstan. We do not do illegal things,” he said, arguing that the company’s legal obligations are defined by its jurisdiction of incorporation.

That stance contrasts with the sanctions landscape surrounding the firm’s ecosystem. A7A5 affiliates Old Vector LLC and A7 LLC, along with reserve-holding lender Promsvyazbank, are designated by the U.S. Department of the Treasury. The measures effectively prevent entities tied to the U.S. financial system from engaging with them.

Ogienko contended that while those restrictions block access to dollar-clearing channels, servicing Russian corporates navigating sanctions does not violate Kyrgyz or Russian law. In his view, A7A5 provides lawful financial infrastructure in jurisdictions where such activity is permitted.

The stablecoin is used to facilitate cross-border transactions for Russian firms facing banking constraints and, via decentralized finance protocols, to access USDT liquidity without directly holding dollar-backed stablecoins. According to data from analytics provider Artemis, A7A5 expanded its circulating supply by nearly $90 billion last year, surpassing the net issuance growth of USDT and USDC over the same period.

Sanctions as catalyst

Ogienko acknowledged that sanctions impose operational friction and limit access to certain Western markets. However, he described them as a structural constraint rather than an economic dead end, arguing they have redirected trade flows and increased demand for alternative settlement rails.

He said the bulk of A7A5 demand comes from counterparties in Asia, Africa and South America trading with Russian importers and exporters that require cross-border payment solutions outside traditional banking channels.

Liquidity remains thin. Major centralized exchanges have avoided listing A7A5 due to concerns about secondary sanctions exposure. While decentralized liquidity pools allow swaps into USDT, available depth is limited.

Ogienko said his visit to Hong Kong focused on expanding integrations. A7A5 is currently deployed on Tron and Ethereum, with additional blockchain launches under consideration as part of a broader distribution strategy.

The project’s presence at global conferences has drawn scrutiny. At Token2049 in Singapore — organized by Hong Kong-based BOB Group in a jurisdiction without Russia sanctions — A7A5 appeared as a sponsor before references were later removed amid concerns from other sponsors.

Despite geopolitical sensitivities, Ogienko outlined ambitious targets. The firm aims to settle more than 20% of Russia’s international trade flows through A7A5 over time, he said.

Domestic deployment in Russia remains pending, as lawmakers continue drafting stablecoin legislation. Ogienko described his engagement with Russian authorities as consultative, centered on regulatory frameworks and blockchain infrastructure rather than direct state control.

“We’re not politicians. We are traders. We are businessmen,” he said, adding that the company remains open to commercial partnerships globally.