Britain has assembled a K-Cell special squad to hunt for the money of Russian oligarchs

A special unit has appeared in the UK to search for and expose the illegal financial schemes of Russian oligarchs. The Segodnya website found out how the new special unit works, who falls into its zone of attention, and what fate awaits businessmen from the Russian Federation.

Laundry for dirty Russian money

Until recently, Russian oligarchs considered the UK the safest place to store their assets. Great Britain is a “laundromat for dirty Russian money” and London is “Moscow-on-Thames” – so the local press often wrote about the real estate of Russian businessmen and related corruption investigations.

According to various estimates, the value of real estate in the UK, which is owned by Russians, ranges from one and a half to four billion pounds. For example, according to the media, oligarch Roman Abramovich owns real estate in the UK for more than 270 million dollars. “The pearl of his British empire” edition of The Times calls the mansion with 15 bedrooms on Kensington Palace Gardens in London. Another of the most expensive mansions in London and a historic mansion in Surrey belongs to Alisher Usmanov. Russian billionaires also own real estate in the country Mikhail Fridman, Oleg Deripaska and others.

Roman Abramovich owns real estate in the UK for more than $270 million. Photo: infosmi.net

After the imposition of sanctions, all of them were under the hood of British law enforcement officers. More than 1,000 Russians learned that their assets were frozen.

Cage for Kleptocracy

Note that the UK cannot confiscate the finances of Russian businessmen against whom sanctions have been imposed, but it can block attempts to withdraw them or use them to pay for any services. And also – to fine for such attempts to circumvent sanctions. According to the BBC, a special agency was created to search for and expose illegal financial schemes under the auspices of the British police and the National Crime Agency (NCA). “Cage for Kleptocracy” (K-Cell). In fact, the mission of the division is to make life difficult for sanctioned oligarchs, super-rich businessmen close to the Kremlin.

Special forces officers immediately began raiding the homes of Russian millionaires. Agents are looking for evidence of the illegal withdrawal of sanctioned capital.

Little is known about the division itself. Information such as: the number of agents, their methods of work, the sources of information they receive are classified. But something about the “Cage for Kleptocracy” is still known.

The state does not have the right to withdraw money from bank accounts, but if K-Cell agents detect their transfer or any use, the property may be seized. At the same time, not only the property of the oligarchs, but also all persons involved in the implementation of their finances, can be arrested. For example, orders to freeze bank accounts have already been received British businessman Graham Bonham Carter based on the suspicion that the funds were derived from the assets of Oleg Deripaska.

The mission of K-Cell is to make life difficult for sanctioned oligarchs. Photo: National Crime Agency

The oligarchs’ assistants may include private bankers, specialized concierges, accountants, lawyers and security guards. All of them are now also under the gun of K-Cell.

The NCA also interacts with real estate agents and monitors how money can move across borders, including through cryptocurrencies.

“We are investigating collaborators who support the deals of corrupt elites and are targeting less traditional means used to hide the movement of significant wealth, such as the sale of high-value assets through auction houses.”– told NCA Director of Intelligence Steve Smart.

As a result of the K-Cell raids, wealthy Russians began to massively refuse to invest in British assets. In turn, the inhabitants of the country are also unwilling to cooperate with the oligarchs from the Russian Federation due to reputational damage and possible large fines.

Because of the K-Cell raids, wealthy Russians have begun to massively refuse to invest in British assets. Photo: PA Images

Russian oligarchs have had decades to hide the dark origins of their money and infiltrate British life, taking advantage of lax regulation. Putin’s invasion of Ukraine brought to naught their quiet, comfortable existence and led to financial difficulties. For example, Abramovich was forced to sell Chelsea because of sanctions, and Friedman complained about the inability to pay a housekeeper and dine at a restaurant.

Mikhail Fridman cannot pay for a housekeeper and have dinner at a restaurant. Photo: woman.ru

Why Britain took on the Russian oligarchs

Back in 2018, a report was released by the Foreign Affairs Committee of the British Parliament on the capital of Russian oligarchs in the UK – called “Gold of Moscow”. According to the document, the British authorities did not seriously seek to oppose the aggressive policy Russian President Vladimir Putin and ignored the role of London in “concealing funds obtained as a result of corrupt practices of persons close to the Kremlin.”

Local media often pointed to the existence of a money-laundering “laundromat” in London, a system by which Russian oligarchs, through local brokers, could purchase expensive real estate using funds of dubious origin. However, thanks to billions of dollars invested in the UK, the interests of Russian oligarchs and influential representatives of the British financial world are closely intertwined. Russian oligarchs in London employed a huge number of lawyers, PR consultants, service personnel, spent money in British restaurants, paid for the education of children in British schools. They became an important part of the super-rich in London, and the government turned a blind eye to the dubious origin of Russian businessmen’s money.

Since the beginning of the conflict between Russia and Ukraine, the situation has changed dramatically. In January of this year, due to the aggravation of the crisis around Ukraine, British Foreign Secretary Liz Truss said that in the event of an invasion of Ukraine, the Kremlin will pay a high price, and the Russian oligarchs who settled in the UK “will have nowhere to hide.” Putin did not listen and unleashed a war, substituting Russian billionaires under the financial blow.

Liz Truss: “The Kremlin will pay a high price, Russian oligarchs will have nowhere to hide.” Photo: Reuters

Political scientist Vadim Karasev notes that the Russian oligarchs with their money no longer represent the value for the UK that it used to be.

“Even under the reign of Margaret Thatcher (Prime Minister of Great Britain in 1979-1990), the idea was developing that London should become the financial center of Europe and the world. Since then, financial injections into the country have been encouraged, money has been pumped out of Russia in huge quantities. Officials and businessmen The Russian Federation robbed the country and transferred money to offshore companies, including British ones, but today the political and economic situation has changed”– the expert says “Today”.

According to Karasev, Russia has ceased to be a partner of Europe and has become an enemy.

“We had to take measures to shut off the oxygen to the oligarch and cause them to put pressure on Putin,” he says.

In addition, the UK’s geopolitical and geo-economic priorities have also changed.

“London is changing its position in the world, and the world itself is changing. Previously, globalization was the dominance of finance. The current era is a competition of military potentials. Today, no one is interested in simply transferring money from country to country. All countries, including Britain, are strengthening development of the military-industrial complex, increase defense budgets. Russia is also developing its military-industrial complex, so the blow to Russian oligarchs and Russian money is beneficial to Britain,” Karasev summed up.

Vadim Karasev: “Russia has ceased to be a partner of Britain and has become an enemy.” Photo: Facebook

Earlier, the Segodnya website reported that the yachts of Russians subject to sanctions continue to be confiscated around the world, and told how the oligarchs are trying to avoid this fate.

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