The U.S. Treasury Department on Thursday expanded economic sanctions targeting A7, a Russian company accused of facilitating the evasion of Western restrictions imposed after Russia’s invasion of Ukraine. The department characterized A7 as a “significant transnational criminal organization,” a classification previously applied to entities such as Mexican drug cartels and Italian mafia groups.

According to the Treasury, A7 operates an extensive network of more than 70 shell companies designed to help sanctioned businesses, individuals, and governments—including Iranian entities—procure goods globally for both civilian and military applications. Investigations have revealed that A7 employs a custom artificial intelligence-powered application to generate fraudulent trade documentation and has utilized cryptocurrencies to launder funds for clients acquiring sensitive components linked to weaponry and drone technology.

A7 was established in 2024 by Ilan Shor, an Israeli Moldovan oligarch who Western intelligence sources say reports directly to the Kremlin. An analysis of internal company documents by The New York Times found that in the first four months of 2025, A7 brokered transactions exceeding $500 million on behalf of Russian businesses and individuals, with over $130 million directed toward items potentially deployable by Russia’s military-industrial complex. Although the U.S. sanctioned A7 in August 2025, operations persisted as affiliated shell companies quickly relocated to jurisdictions including Bahrain, Nigeria, and notably the United Arab Emirates, a known center for Iranian sanctions evasion.

The Treasury’s new action does not impose direct sanctions on every entity within A7’s network. Instead, it introduced a regulatory measure requiring U.S. financial institutions to screen transactions against a confidential list of shell companies associated with A7, barring any engagement with those entities. Treasury Secretary Scott Bensent emphasized that the move aims to cut off access to the U.S. financial system for parties supporting illicit financing for America’s adversaries.

In response, A7 denied allegations of collaborating with Iran or terrorist organizations, labeling the designation as “blatant lie and slander.” The firm asserted that it had not facilitated transactions for such clients and claimed its operations would remain unaffected by the recent sanctions due to its organizational structure designed to withstand such restrictions.

Separately, the Treasury also announced tightened sanctions on Iran targeting sectors of its industrial economy, including automotive, rail, and mining. These combined measures reflect a growing convergence of U.S. economic penalties addressing interconnected conflicts in Ukraine and Iran.

Earlier this year, the Treasury extended Iran-related sanctions to Russia’s VTB Bank and Yakovlev Design Bureau, a Russian aircraft manufacturer previously sanctioned over the Ukraine conflict, highlighting an expanding approach that links financial restrictions on entities involved in or supporting geopolitical conflicts across multiple theaters.