IPN investigation: Ilan Shor key player in global network bypassing Russia sanctions via shell firms, crypto, and banks in Central Asia & Middle East
Moldovan fugitive Ilan Shor, who was convicted in the "billion-dollar theft" case, has resurfaced at the heart of an international network with significant financial and geopolitical implications. An investigation published by IPN reveals that the politician plays a crucial role in a complex scheme designed to evade international sanctions imposed on the Russian Federation. This scheme involves a network of companies, banks, digital currencies, and commercial channels operating in countries such as Kyrgyzstan, Uzbekistan, the United Arab Emirates, Mongolia, Egypt, and others.
Controlled banks, shell companies, and cryptocurrencies
An investigation led by journalist Denis Dermenji reveals a complex scheme centered around the so-called “Commercial Company of the Kyrgyz Republic.” This entity was officially created by the Ministry of Economy of Kyrgyzstan but is reportedly controlled by Ilan Shor. It possesses the exclusive right to make payments for goods that do not even enter Kyrgyz territory and has rapidly opened branches in several countries, including Mongolia, Uzbekistan, Vietnam, Egypt, and the United Arab Emirates.
The network is directly linked to Promsvyazbank, a state-owned bank in Russia that caters to the Russian Ministry of Defense. Additionally, it includes Keremet Bank, which has been sanctioned by the US, EU, and UK since January 2025, and Capital Bank of Central Asia, which has taken over its operations following these restrictions.
In parallel, Shor and his associates are launching virtual currencies to bypass financial sanctions. Among these are A7A5—a stablecoin pegged to the Russian ruble—and USDKG (“Gold Dollar”), which is backed by the US dollar and physical gold. According to Elliptic, the daily trading volume of these currencies exceeded $1 billion during the summer of 2025, achieving a total capitalization of $521 million in just two weeks.
Network of transnational companies and activity in Dubai
The investigation has identified several companies within Ilan Shor’s empire, including:
- A7 – 49% owned by Promsvyazbank and 51% by Shor.
- A71, A7-AGENT, and TIMEFINANCE – involved in financial services and trading in chemicals and industrial equipment.
- EXIM INTERNATIONAL – a joint venture with VEB.RF, Russia's development bank.
- UZIMPEXTRADE – operational in Uzbekistan.
- FAVNIR SRL-FZ – registered in the United Arab Emirates, connected to the trade network in the Middle East and China.
FAVNIR was proposed by Moscow as an intermediary for payments related to natural gas deliveries to the Transnistrian region, but the authorities in Chisinau requested its removal from the arrangement.
Despite Ilan Shor's name not formally appearing in many of these organizations, there are strong indications of centralized coordination under his control.
“The network is just one component of a much larger operation.”
Denis Dermenji, the journalist and director of IPN, noted that documenting this subject was challenging and required significant resources and reliable sources across various jurisdictions.
“Such topics are increasingly complex due to the involvement of multiple jurisdictions, languages, legislations, and institutions. Much of the information is not immediately visible, which is why utilizing specialized tools is essential for investigative journalism,” he told Teleradio-Moldova.
According to him, one of the most significant revelations from this documentation is the geopolitical dimension of the mechanism orchestrated by Ilan Shor, which transcends financial matters and addresses broader strategic interests of the Russian Federation.
“These financial instruments not only aid Russia in circumventing sanctions but are also redistributed across different sectors and countries based on the Russian state's interests. The Republic of Moldova is among those targeted. In summary, the financial network is merely one part of a much larger operation,” Dermenji explained.
Recently, the Financial Times reported that Ilan Shor was involved in a dubious scheme that enabled several Russians to conduct cross-border transactions totaling around $9.3 billion while circumventing Western sanctions.
Ilan Shor was convicted in the Republic of Moldova for bank fraud. While he is supposed to serve a 15-year prison sentence, he is currently at liberty in Moscow.
