Ukraine’s Defense Intelligence has identified more than a dozen Russian banks, financial intermediaries, and payment systems that help circumvent international sanctions, according to Ukraine’s Defense Intelligence.

Due to the extensive sanctions imposed on Russia’s financial sector, Russia, and its defense sector in particular, have been forced to seek alternative channels for international payments.

For this purpose, digital currencies, cross-border payment networks, and the financial infrastructure of other countries that have not joined the sanctions are being used.

Several financial entities are involved in such activities, including:

・Finzypay — a payment and cryptocurrency platform that carries out conversions and transfers using RubX, a ruble-pegged digital asset developed with the participation of the state corporation Rostec;

・Asia-Pacific Bank — a financial institution that conducts cross-border settlements using China’s CIPS interbank system and a Kazakh bank;

・Sistema-Crypto — a Russian fintech service that is part of the AFK Sistema group, which is linked to sanctioned Russian oligarch Vladimir Yevtushenkov.

According to Ukraine’s Defense Intelligence, access to international payments is particularly important for Russia’s military-industrial complex, as it continues to depend on foreign electronic components, technological equipment, raw materials, and other critical resources.

The operation of alternative financial channels therefore allows Russia to maintain the necessary international purchases and retain access to components and technologies required for weapons production.

The European Union previously officially extended individual restrictions imposed over threats to Ukraine’s sovereignty but lifted sanctions on Russian oligarchs Alisher Usmanov and Mikhail Fridman.