UK sanctions illicit gold trade, says it funds Russia's war

The United Kingdom on Dec. 9 announced new sanctions targeting the illicit gold trade, which it said helps finance Russia's full-scale invasion of Ukraine.

"Russia uses the illicit gold trade to launder money and evade sanctions, in doing so bolstering (Russian President Vladimir) Putin's war efforts," the U.K. government said in a press release.

The latest round of sanctions imposes asset freezes on five individuals involved in the illicit gold trade. One of the individuals, Anto Joseph, is the CEO and manager of Paloma Precious, which has purchased more than $300 million of Russian gold.

These are indirectly supplying Russia with funds for its war against Ukraine, the press release said.

The U.K. in November 2023 imposed sanctions against Paloma Precious and other entities involved in Russia's gold sector.

Gold brought $15.5 billion to the Russian economy in 2021, making it one of the country's most valuable commodities after energy exports, the British government reported in 2023.

Russia has also reportedly laundered billions of dollars in African gold since 2022, according to international analysts.

Russia is one of the world's major gold producers. Russia's gold reserves have likely facilitated sanctions evasion, allowing Moscow to purchase goods it cannot obtain conventionally.

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