This scheme involves using third countries to melt down Russian gold bars and jewelry, then laundering the proceeds through London's gold market. Russia, the world's third-largest gold producer, relies heavily on gold for revenue, with the precious metal generating nearly £13 billion for its economy in 2021.
Following the imposition of sanctions by the UK in 2022 to limit Russian gold exports, there is evidence that Russian groups are systematically sending gold to countries that do not enforce Western sanctions.
The NCA's alert highlights concerns that these attempts are designed to disguise the gold's origin, allowing it to be integrated into supply chains and sold in the UK.
The operation involves multiple routes, including the production of jewelry from Russian gold, which is eventually scrapped and turned into bullion at accredited refineries.
Adrian Searle, director of the NCA’s economic crime center, emphasized the significance of London's precious metals market in setting global gold standards and the importance of this alert in preventing sanctioned individuals from using gold to evade UK sanctions.