Press release: UK cracks down on gold and oil networks propping up Russia’s war economy

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National Crime Agency

November 8

00:00 2023

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new UK sanctionstarget29individuals and entities operatingin and supporting Russias gold, oiland strategic sectors
those sanctioned includeRussias largest gold refiner andinternational networks propping up Russias gold, oil and finance industries
to date the UK has sanctioned over 1,800 individuals, companies, and groups under our Russia sanctions regime

Twenty nineindividuals and entities operatingin and supporting Russias goldandoilsectorshave been sanctioned by the UK today [8November]. New listingsinclude both Russian oligarchs and businesses, andthird country enablers fuelling Russias war revenues.

Russias goldand oilmarketshave close ties to the Kremlinandserve as critical revenue streams for itsillegal invasion of Ukraine. Gold is a significant income stream for Russias war effort one of the highest by value after oil and gas, worth 12.6 billion to the Russian economy in 2021.

Following the illegal full-scale invasion of Ukraine the UK,alongside international partners,hasintroduced awide set of measures intended to bear down on those revenues.This includes our oil price cap, which has contributed to a 25% reduction in Russian oil revenues between January and September 2023 versus the same period in 2022. Russia has repeatedly attemptedto circumvent these measuresby enlisting the support of actors in other jurisdictions.

Todays listings are intended to block individuals and entities from helping Russia to dodge the impact of international sanctions. Those newly sanctioned include a United Arab Emirates-based network responsible for channelling more than $300 million in gold revenuesto Russia.As part of this, gold trader Paloma Precious DMCC and the key individual behind the outfit, Howard Jon Bakerhave been targeted.

The UKhasalso sanctioned 2 of Russias largest gold producers, Nord Gold PLC and Highland Gold Mining Limited, alongside Russian oligarchs Vladislav Sviblovand Konstantin Strukov.

In tandem with todays sanctions, the National Crime Agency has issued a Red Alert to raise awareness of common evasion techniques used by enablers in the gold industry.The Red Alert also tackles sanctions circumventionby calling on businesses to report suspicious activity, including any attempts to breach sanctions and providing guidance on how to do so.

Foreign Secretary James Cleverly said:

Sanctions continue to deal a heavy blow to the Kremlins war economy, to date deprivingPutinofover$400 billionto fund his illegal invasion of Ukraine. But we must keep tightening the screws on Moscow.

Todays sanctions will hit those who have providedsuccour to Putin by helping him to lessen the impact of our sanctions on Russian gold and oil 2 critical sources of revenue for the Russian war machine.

As weroot out and closedown these circumvention avenues, well continue to box Putin in and make sure his faltering war effort in Ukraine ends in failure.

Todaythe UK hasalso sanctionedParamount Energy & Commodities DMCC. This outfit is known to employ opaque ownership structures and has been used by Russia to soften the blow of oil-related sanctions imposed by the UK in coordination with G7 partners.

The UK has also acted today to disrupt a covert procurement network used by Russia to acquirecritical western technology, sanctioning OOO TK Fly Bridge, a company procuringdual-use goods for Russian electronics producersNPP Istok and Ecitech. Also sanctioned from this covert network are Maksim Ermakov, founder of OOO TK Fly Bridge, alongside eight of NPP Istoks board members.

To date the UK has sanctioned over 1,800 individuals, companies,and groups under our Russia sanctions regime, including 129 oligarchs with a combined net worth of 145 billion at the time of the invasion.

Thefull list of individuals and organisationssanctionedby the UK today: