A7, a Russian cross-border payments company backed by state-owned PSB Bank, used a crypto conference in Mumbai last week to pitch India-Russia payment services, including a tool that lets buyers settle overseas invoices in the USDT stablecoin. The announcement appeared across Indian media as a sponsored "impact feature". What those stories leave out: the US Treasury designated the A7 Network a transnational criminal organization on October 1, 2026, and A7 is already under US, UK and EU sanctions. For Indian businesses, that changes the risk calculation entirely.
A7's India payments push, the key facts:
- Who: A7, set up in 2024 with the participation of Russia's state-owned PSB Bank. It calls itself Russia's largest payment agent.
- What: at the Unchained Summit India in Mumbai (November 5 to 6, 2026), A7 presented an invoice service paid in USDT and a proposed rupee-rouble transfer system for individuals.
- Company claim: its payments to India in January to August 2026 were 60% higher than in all of 2025.
- Sanctions: the US Treasury calls the A7 Network "a shadow banking network with ties to Russia used by the Iranian regime to evade sanctions".
- Risk: dealing with designated entities can expose companies and banks to US secondary sanctions.
What A7 Announced in Mumbai
According to the announcement published by BusinessToday under its "Impact Feature" label, and syndicated by other outlets, A7's delegation presented two services at the Unchained Summit India, where its A7 International unit was a sponsor:
- A7 International invoice payments, launched in October 2026, which let businesses and individuals pay overseas invoices in USDT. Suppliers receive US dollars, euros, Chinese yuan or UAE dirhams in their bank accounts, without needing a crypto wallet.
- A proposed national-currency transfer system for individuals moving money between India and Russia through local partner banks, to be tested first by Indian students and workers in Russia.
A7 says it processed more than $110 billion in payments in 2025, handled about 19% of Russian businesses' foreign trade settlements, and serves about 15,000 corporate clients in more than 100 countries. These are company figures and could not be independently verified. The announcement also said PSB chairman Petr Fradkov had presented the national-currency proposal to Prime Minister Narendra Modi at INNOPROM India in September.
The Sanctions Context the Announcement Leaves Out
None of the syndicated announcements mention that A7 is one of the most heavily sanctioned payment networks in the world:
- August 14, 2025: the US Office of Foreign Assets Control (OFAC) designated A7 LLC and Old Vector LLC, the issuer of the rouble-backed A7A5 token.
- October 1, 2026: the US Treasury designated the A7 Network a "significant transnational criminal organization". It said the network "is led by Ilan Mironovich Shor", a sanctioned and convicted fraudster, and served the Central Bank of Iran, the Islamic Revolutionary Guard Corps and Iran-backed groups.
- Same day: the Financial Crimes Enforcement Network (FinCEN) proposed barring US financial institutions from processing transfers involving A7's sub-agents. It found those sub-agents processed more than $17 billion between January 2025 and June 2026.
The UK sanctioned A7 in May 2025 and the European Union in July 2025, and both have since added related entities. Treasury's release does not mention India.
Why Indian Businesses Should Be Careful
India does not enforce US or EU sanctions as domestic law, and India-Russia trade in national currencies is legal. But Indian companies and banks with US dollar exposure, US customers or international correspondent banks can face serious consequences for dealing with US-designated entities, including loss of access to the dollar system.
Paying invoices through a sanctioned network via a stablecoin also raises compliance questions at home. The Reserve Bank of India has been cautious about private stablecoins, and banks screening incoming funds may flag transfers linked to A7.
Practical steps for exporters and importers:
- Screen counterparties against the US OFAC, UK and EU sanctions lists before agreeing payment routes.
- Ask your bank whether it will accept funds routed through a given payment agent.
- Use established rupee-rouble channels such as banks operating special rupee vostro accounts approved by the Reserve Bank of India, rather than intermediaries that are under sanctions.
- Get legal advice before accepting stablecoin-based settlement.
The Bigger Picture: Russia's Search for Payment Routes
Since Western sanctions cut several major Russian banks off from the SWIFT messaging system in 2022, Russian companies have relied on payment agents, third-country intermediaries and, increasingly, crypto tokens to settle trade. India has become one of Russia's biggest trading partners through oil purchases, which makes it an important market for any Russian payment provider. A7's Mumbai pitch is part of that push, and Western regulators are pushing back just as hard.
For related coverage, see our reports on crypto security at Binance and on the Middle East's fintech boom.
FAQs
What is A7 in Russia?
A Russian cross-border payments company set up in 2024 with the participation of state-owned PSB Bank. The US Treasury has designated the A7 Network a transnational criminal organization.
Is A7 sanctioned?
Yes. The US designated A7 LLC in August 2025 and the wider A7 Network in October 2026. The UK and EU have also imposed sanctions.
Can Indian companies use A7?
It is not illegal under Indian law as such, but dealing with a US-designated network creates significant secondary-sanctions and banking risks. Take legal advice first.
Checked on November 11, 2026, against the A7 announcement as published by BusinessToday, the US Treasury and FinCEN. This article is for information only and is not legal advice.