UK Hits Putin Where It Hurts

TODAY the UK’s Foreign Secretary has announced 29 new sanctions in a crack down on individuals and corporations that are propping up Russia’s economy.

On Wednesday, November 8, a report from the UK Government gave details of measures that aim to strike at the heart of Putin’s war machine by targeting Russia’s gold and oil industries.

Striking At Russia’s Economic Lifelines

The newly sanctioned include Russia’s largest gold refiner and global entities that sustain Russia’s gold, oil, and financial industries. Up until now, the UK has sanctioned over 1,800 individuals, businesses, and organisations under its Russia sanctions regime.

Gold, a substantial contributor to Russia’s war chest after oil and gas, brought in £12.6 billion to its economy in 2021.

The UK’s Oil Price Cap has seen Russian oil revenues fall by a quarter from January to September 2023 compared to the previous year. Russia has been actively seeking ways to bypass these restrictions, prompting further action from the UK.

Clampdown On Sanction Evasion Networks

The UK has taken steps to bar entities from aiding Russia in mitigating the effects of global sanctions. Among those penalised is a network based in the United Arab Emirates, which has funnelled over $300 million in gold profits to Russia, including the enterprise Paloma Precious DMCC and its key figure Howard Jon Baker.

Additionally, two of Russia’s most significant gold mining companies, Nord Gold PLC and Highland Gold Mining Limited, have been sanctioned alongside Russian tycoons Vladislav Sviblov and Konstantin Strukov.

Coinciding with the sanctions, the National Crime Agency has issued a Red Alert to highlight evasion strategies used within the gold sector and to urge businesses to report any suspect activities.

James Cleverly’s View

Foreign Secretary James Cleverly stated, ‘Sanctions continue to deal a heavy blow to the Kremlin’s war economy, to date depriving Putin of over $400bn to fund his illegal invasion of Ukraine. But we must keep tightening the screws on Moscow.’

He concluded: ‘As we root out and close down these circumvention avenues, we’ll continue to box Putin in and make sure his faltering war effort in Ukraine ends in failure.’

Broadening Sanctions

The UK has also sanctioned Paramount Energy & Commodities DMCC, known for its intricate ownership structures and assisting Russia in softening the impact of oil sanctions.

A hidden network procuring vital Western technology for Russia has also been targeted, including OOO TK Fly Bridge and key individuals such as its founder, Maksim Ermakov, and eight members of NPP Istok’s board.

With these measures, the UK’s sanctions under its Russia regime now encompass over 1,800 entities, including 129 oligarchs with a net worth totalling £145 billion at the start of the invasion.