UK Drug Deals Funding Russian War Machine – NCA Warns
A Huge Investigation Highlights Impact of UK Drug Deals on Russian War Effort
The National Crime Agency (NCA) has issued a stark warning that the proceeds of drug dealing and other organised crime in the UK are helping to fund Russian state-linked financial networks involved in the war in Ukraine.
The agency’s latest operation has revealed the scale and sophistication of money-laundering activity connecting everyday criminal cash to international geopolitics.
According to the NCA, Operation Destabilise has uncovered a vast criminal ecosystem in which cash generated from UK drug sales is laundered through complex corporate and financial structures spanning multiple countries.
Two major networks, known as TGR and Smart, are said to have processed billions of pounds in criminal funds on behalf of drug traffickers, firearms suppliers, and people-smuggling groups.
From Street-Level Deals to Sanctions Evasion
The investigation revealed that George Rossi, who allegedly led the TGR network, purchased a controlling stake in Keremet Bank in Kyrgyzstan through his company, Altair Holding SA.
The bank has since been linked to Promsvyazbank (PSB), a Russian state-owned institution sanctioned by the United States as a “hub for sanctions evasion.”
Investigators believe Keremet Bank facilitated financial transactions for PSB that directly supported Russia’s military-industrial operations – meaning that laundered cash from UK criminal activity may have indirectly financed the production of arms used in the conflict in Ukraine.
Sal Melki, Deputy Director for Economic Crime at the NCA, described the findings as proof of a “vast criminal ecosystem funding some of the worst activities in the world.”
Melki said:
“We can draw a thread between somebody buying cocaine on a Friday night in the UK, all the way through to geopolitical events that are causing suffering across the world.”
Money Laundering at Scale
The networks under investigation operated across at least 28 towns and cities in the UK, providing what the NCA called a “full spectrum of money-laundering services.”
This included converting criminal cash into cryptocurrency, using construction and logistics companies as fronts, and smuggling money abroad hidden in boxes of baby formula and washing powder.
Those linked to the groups include former professional footballer James Keatings and several men alleged to have laundered funds for the Irish Kinahan cartel.
Two individuals, Valeriy Popovych and Vitaliy Lutsak, were convicted earlier this year after laundering over £6.6 million by exporting vehicles from the UK to Ukraine and selling them for cryptocurrency.
At the upper end of the network, Ekaterina Zhdanova – who ran the “Smart” organisation – is currently in custody in France, accused of providing financial services to Russian espionage operations across Europe.
Her network has been linked to the laundering of ransomware proceeds and high-value cash from UK organised crime.
The Role of Couriers and ‘Everyday’ Participants
While international money-laundering networks attract most headlines, the NCA has emphasised that their success depends on an extensive network of local couriers and facilitators.
These individuals collect, store, or move cash across the country, often earning a small commission – typically around 0.5% of the total sum.
However, those caught acting as couriers face serious criminal consequences.
Under the Proceeds of Crime Act 2002, transporting or possessing money suspected to represent criminal property can result in imprisonment for up to 14 years and confiscation of assets under Proceeds of Crime (POCA) proceedings.
In an effort to deter would-be couriers, the NCA has launched an advertising campaign featuring posters in motorway service stations, written in English and Russian, warning: “Moving money for organised criminals might seem like easy work. But it ends with hard time.”
Heavy work for criminal defence lawyers.
From a criminal defence perspective, cases involving money laundering and sanctions evasion raise complex legal issues.
Investigations often involve multi-jurisdictional evidence, encrypted communications, and digital financial records that require forensic analysis and expert testimony.
Establishing a client’s knowledge and intent – key elements in any money-laundering prosecution – can be challenging where individuals were unknowingly caught up in broader criminal networks.
Couriers or employees within legitimate businesses can sometimes face prosecution for facilitating the movement of cash or assets without understanding the full context of the criminal enterprise.
Defence lawyers will often focus on demonstrating a lack of awareness, coercion, or misrepresentation – particularly where clients were promised legitimate work or faced pressure from others.
Even where conviction is likely, effective legal representation is essential in securing fair sentencing outcomes and challenging confiscation orders that seek to recover alleged criminal benefit.
Global Impact, Local Consequences
While the NCA’s warning focuses on the geopolitical implications of organised crime, it also serves as a reminder of how domestic drug use and street-level dealing fuel wider criminal economies.
Each link in the chain – from users and dealers to couriers and financial intermediaries – contributes to a system that sustains both local harm and global instability.
As the UK continues to strengthen its approach to financial crime, individuals involved in any aspect of money handling or asset transfer face increasing scrutiny under new laws expanding the scope of economic crime enforcement.
These include powers under the Economic Crime and Corporate Transparency Act 2023 and tougher penalties for breaches of financial sanctions.
How We Can Help
As we have discussed, accusations of money laundering can have serious implications. If you or someone you know is facing accusations and is in need of legal representation, it is imperative to seek legal representation at the earliest opportunity. Call us now on 0161 477 1121 or email us.
