Britain introduced new sanctions against the illegal trade in gold. This will reduce Russia's ability to finance the war against Ukraine. This is stated in the statement of the British Ministry of Foreign Affairs.
Points of attention
- Britain's new sanctions on Russian gold smuggling aim to restrict Russia's financing of the war in Ukraine.
- Illegal trade of gold from Russia enables money laundering and sanctions evasion, supporting Putin's military actions in Ukraine.
- The British government has frozen assets of individuals involved in gold smuggling from Russia, deterring those contributing to illegal activities.
- Western countries, in response to Russia's invasion of Ukraine, have imposed sanctions on Russian gold imports to disrupt financing channels.
- The United Arab Emirates emerged as a key hub for Russian gold trade after Western sanctions blocked traditional export routes, illustrating the impact of global sanctions.
- Russian gold smuggling poses a threat to the international financial system and fuels corruption, undermining the rule of law and human rights.
Gold sanctions. Britain punished smugglers associated with Russia
As part of sanctions, the British government froze the assets of four people involved in gold smuggling from Russia.
Also, the assets of another person who bought Russian gold worth more than 300 million dollars and thereby ensured the income of the Russian Federation were frozen.
The British Foreign Office stressed that the illegal trade in gold is "an attack on the legal trade in a valuable commodity that fuels corruption, undermines the rule of law and entrenches human rights violations."
Russia uses the illegal trade in gold to launder money and circumvent sanctions, thereby supporting Putin's military actions, the agency added.
Sanctions against Russian gold
After the start of the full-scale Russian invasion of Ukraine, Western countries imposed sanctions against Russian gold. They include a ban on imports.
In particular, it became known on June 28, 2022, about the American sanctions, which included a ban on the import of Russian gold. But they concerned only the gold that was on the territory of the Russian Federation.
The United Arab Emirates has become a key hub for Russian gold trade after Western sanctions cut off Russia's more traditional export routes.
As Reuters reports with reference to Russian customs, in the year since the start of the war in Ukraine, the Emirates imported 75.7 tons of Russian gold worth $4.3 billion — compared to 1.3 tons in 2021.
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