The United States and the United Kingdom announced fresh sanctions on Monday aimed at disrupting the illicit gold trade, which the UK claims is financing Russian President Vladimir Putin’s war in Ukraine and contributing to global corruption.
The UK government froze the assets of four individuals allegedly involved in gold smuggling, including one individual accused of purchasing over $300 million worth of Russian gold, thereby funneling money to the Russian state.
The British Foreign Office condemned the illicit gold trade, describing it as harmful to legitimate commerce, fueling corruption, violating human rights, and undermining the rule of law. “Russia uses the illicit gold trade to launder money and evade sanctions, reinforcing Putin’s war efforts,” the statement added.
The Russian embassy in London has yet to respond to requests for comment.
Following Russia’s 2022 invasion of Ukraine, Britain and other Western nations banned the import of new Russian gold. In response, Russia has sought alternative markets to sell its gold.
Last week, the UK, in coordination with the US, announced the disruption of a global money laundering ring used by wealthy Russians to circumvent sanctions.
On Monday, the United States imposed sanctions on dozens of individuals and entities linked to a global gold smuggling and money laundering network, centered in Zimbabwe, the U.S. Treasury Department said. Among those targeted was Kamlesh Pattni, a Zimbabwean businessman with close ties to the late former president Robert Mugabe. Pattni’s network has allegedly exploited Zimbabwe’s natural resources, underreporting proceeds to gain illicit profits.
The UK also imposed sanctions on Pattni in conjunction with the US. His network reportedly operated across multiple countries, including the UAE, Singapore, and Kyrgyzstan.
This action coincided with International Anti-Corruption Day, according to the U.S. Treasury.
As part of broader anti-corruption efforts, the UK appointed Margaret Hodge, a former Labour Party lawmaker and long-time anti-corruption advocate, as the new ‘Anti-Corruption Champion.’ In this role, Hodge will work to coordinate efforts between parliament, the private sector, and civil society. The UK government is set to release a new anti-corruption strategy in 2025.
