Brits buying cocaine on a Friday night are ‘funding Russian war in Ukraine’, crime chiefs warn

A billion-pound organised crime network active in the UK is funding the war effort in Ukraine and Russian espionage, the National Crime Agency has revealed

Brits buying cocaine on a weekend night out could be funding the Russian war effort in Ukraine, UK crime chiefs have warned. The National Crime Agency (NCA) said a billion-pound money laundering operation active in the UK is bankrolling Vladimir Putin’s war machine, as well as Russian espionage activities.

The vast money-laundering network is so rich it bought a bank in Kyrgyzstan to finance Russia’s military activities. The international scheme, headquartered in Moscow, connects Brits “buying cocaine on a Friday night” to the “highest levels of organised crime ” and the “Russian industrial military complex”, according to revelations from the NCA on Friday.

The network accepts dirty money from criminal gangs for a fee, converting it into untraceable cryptocurrency, thereby concealing illicit profits from law enforcement.

The NCA disclosed that the Russian state has utilised this network to fund espionage activities, including a coastal spy ring that was imprisoned earlier this year.

Sal Melki, Deputy Director for Economic Crime at the NCA, stated: “For the first time we are tying drug trades in our community all the way through to the highest levels of organised crime, geopolitics, sanctions evasion, the Russian industrial military complex and state-linked activity.

“We can draw a really clear thread between someone buying some cocaine on a Friday night all the way through to geopolitical events that are causing suffering around the world.”

Mr Melki revealed that the Russian Intelligence Services attempted to use the network to supply funds to Bulgarian spies, led by Orlin Roussev, who were sentenced in May at the Old Bailey. Roussev, Biser Dzhambazov, Katrin Ivanova, Tihomir Ivanchev, Ivan Stoyanov and Vanya Gaberova were part of a unit operating out of a 33-room guest house in Great Yarmouth, reports the Mirror.

Security Minister Dan Jarvis declared: “This complex operation has exposed the corrupt tactics Russia used to avoid sanctions and fund its illegal war in Ukraine. We are working tirelessly to detect, disrupt, and prosecute anyone engaging in activity for a hostile foreign state. It will never be tolerated on our streets.”

Russian citizen Ekaterina Zhdanova, 39, who leads a cryptocurrency enterprise called Smart, is said to orchestrate the entire scheme. US authorities imposed sanctions on her in November 2023 for allegedly transferring funds for Russian oligarchs.

The criminal laundering service has been utilised by various gangs, including the infamous Kinahan organised crime syndicate. A firm connected to the network holds a majority share in Kyrgyzstan-based Keremet Bank, which has been involved in procuring supplies for the Russian armed forces, according to the NCA.

Through Operation Destabilise, the NCA and its allies are pursuing the network that functions across no fewer than 28 UK cities and towns. During the operation’s second stage, an additional 45 suspected money launderers have been detained and more than £5.1 million in cash confiscated in under 12 months.

The NCA has assisted its global law enforcement colleagues in recovering more than £20 million from the network. Since its establishment, a total of 128 arrests have been made, with over £25 million confiscated in cash and cryptocurrency within the UK alone.

Mr Melki stated: “These are not people laundering fifty quid down the bookies, these are serious criminals doing high numbers that are willing to pay a fee to have the proceeds of their crime laundered. This is happening up and down the country.

“Today we can reveal the sheer scale at which these networks operate and draw a line between crimes in our communities, sophisticated organised criminals and state sponsored activity. The networks disrupted through Destabilise operate at all levels of international money laundering, from collecting the street cash from drug deals, through to purchasing banks and enabling global sanctions breaches.”

• If you or somebody you know has been affected by this story, contact Talk To Frank for free, confidential advice on 0300 1236600, texting 82111 or visiting their website.

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