The UK National Crime Agency has revealed that money from drug deals in Britain is being laundered through a sophisticated network to fund Russian arms factories, drawing a direct line between local criminal activity and the ongoing war in Ukraine. This warning highlights a vast criminal ecosystem that processes billions of pounds to support Russia’s military-industrial base, with the NCA intensifying efforts to disrupt the operations from street-level couriers to international financiers.
A Russian-led money-laundering network operating across the UK has been identified by investigators, comprising two key groups known as TGR and Smart. These organizations work together to provide a full spectrum of laundering services, enabling drug dealers, illegal firearms suppliers, and people smugglers to convert cash into cryptocurrency or other assets. The network is active in at least 28 towns and cities, sustaining what officials describe as an architecture that allows crime to flourish by processing illicit funds seamlessly and on a massive scale.
Central to this scheme is the purchase of Keremet Bank in Kyrgyzstan by George Rossi, who heads the TGR network, through his company Altair Holding SA. On Christmas Day 2024, the company acquired a 75% stake in the bank, which was subsequently used to facilitate payments for Promsvyazbank, a Russian state-owned institution labeled by the US Treasury as a sanctions evasion hub. Keremet Bank played a critical role in channeling funds to Russia’s military-industrial base, directly supporting arms production for the conflict in Ukraine and illustrating how criminal proceeds are weaponized in geopolitical struggles.
The laundering methods employed are diverse and elaborate, ranging from using cash-rich businesses like construction to bundling money in stash houses before smuggling it overseas. In some instances, cash was hidden in boxes of washing powder and baby formula to evade detection. The network also involved converting physical currency into cryptocurrency, making it easier to move funds across borders without trace. This multi-pronged approach allowed the groups to trade billions of pounds in criminal wealth, with one spreadsheet indicating £6.63 million laundered in just a 10-month period.
Key individuals linked to the network include Ekaterina Zhdanova, who ran the Smart operation and provided financial services to a ring of spies tracking Russia’s enemies across Europe, and she is now in custody in France awaiting trial. Others, such as former Hibernian footballer James Keatings and associates like Semen Kuksov and Andrii Dzektsa, have been tied to laundering money for the Irish Kinahan drugs cartel. Additionally, two men convicted this year, Valeriy Popovych and Vitaliy Lutsak, were found buying vehicles in the UK to sell in Ukraine for cryptocurrency, further exemplifying the network’s global reach.
The NCA’s investigation, dubbed Operation Destabilise, began by tracking the ransomware group Evil Corp but uncovered what officials call eye-watering scales of money laundering. Sal Melki, the agency’s Deputy Director for Economic Crime, emphasized that this ecosystem funds really bad things worldwide, from local drug markets to international conflicts. He noted that the sheer scale of the threat cannot be ignored, as it underpins serious crime in the UK and has tangible impacts on global stability, with funds flowing directly to Russian war efforts.
In response, the NCA has launched a multi-faceted disruption campaign, including placing adverts in motorway service station toilets in Russian and English to warn couriers about the severe legal consequences they face. Couriers, who typically earn a 0.5% commission, risk prison sentences of five years or more for moving criminal cash. Melki stated that the agency is communicating directly with these individuals to signal that the walls are closing in, underscoring a commitment to dismantling the network from the bottom up and holding all participants accountable.
The implications of this case extend beyond crime prevention, touching on national security and international relations. By linking street-level drug purchases to the financing of Russia’s war machine, the NCA aims to raise public awareness and spur collaborative efforts with global partners to combat money laundering. As the investigation continues, the agency vows to pursue all levels of the network, highlighting the ongoing challenge of curbing illicit financial flows that fuel both local criminality and distant conflicts.
