UK hits Russia with new sanctions as Putin's war sees gold and oil targeted

08 November 2023 , 17:00

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Putin and top Russian businesses have been targeted by economic sanctions since the war began (Image: POOL/AFP via Getty Images)

Britain has hit Russia’s gold and oil-funded warchest with massive sanctions. As many as 29 individuals and organisations supporting the Ukraine conflict have been hit .

The crackdown adds to 1,800 individuals, companies and organisations helping Russian President Vladimir Putin’s attack on Kyiv. Those hit in the latest round include super-wealthy oligarchs and even companies outside Russia helping the war-effort.

Moscow’s gold and oil economy is closely tied to the Kremlin and was worth around £12.6 billion to its economy in 2021. The UK has led the way with the west in trying to smash these revenue streams, including an oil price gap which has lowered Russian oil revenues by 25%.

These new 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 feeding more than £280 million in gold revenues to Russia.

James Cleverley said the sanctions dealt 'a heavy blow' to Russia's economy (Andy Stenning/Sunday Mirror)

As part of this, gold trader Paloma Precious DMCC and the key individual behind the outfit, Howard Jon Baker have been targeted. The UK has also sanctioned two of Russia’s largest gold producers, Nord Gold PLC and Highland Gold Mining Limited, alongside Russian oligarchs Vladislav Sviblov and Konstantin Strukov.

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And the UK’s National Crime Agency has issued a red alert to industry, warning businesses how to avoid techniques used to circumvent sanctions. Foreign Secretary James Cleverly said: “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.

“Today’s sanctions will hit those who have provided succour to Putin by helping him to lessen the impact of our sanctions on Russian gold and oil – two critical sources of revenue for the Russian war machine.

“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.”

The UK has also acted today to disrupt a covert procurement network used by Russia to acquire critical western technology.

So far UK has sanctioned over 1,800 individuals, companies, and groups under the Russia sanctions regime, including 129 oligarchs with a combined net worth of £145bn at the time of the invasion.

Chris Hughes