In the interest of protecting the integrity of the United Kingdom’s financial system, the British House of Commons launched an investigation into allegations that Russians are illegally funnelling money through shell-corporations registered in the UK. The issue was recently taken up by the foreign affairs committee, which opened a parliamentary inquiry.

It appears the UK government is finally addressing the problem of illicit Russian money, which has flooded the City of London. Billions have been allowed to slip passed the radar – until now.

Making newspaper headlines in both London and Moscow is one case in point that sheds light on the situation. It involves Alexander Shchukin, a Russian mining magnate who is currently under house arrest in Russia on suspicion of committing criminal offence and giving bribes.

Shchukin took control of Russia’s Gramoteinskaya coal mine, which had previously been sold to the UK’s private equity firm Lehram. In response, Lehram tried unsuccessfully to annul the transfer to Shchukin, which it considered to be illegal.

Back in the UK, not only have members of Shchukin’s family and close business associates obtained British citizenship, they have also purchased an international security company, 3e International.

Officially owned by a shareholding company, the UK High Court of Justice ruled that ownership of 3e International actually belongs to Shchukin’s son-in-law, Ildar Uzbekov. He is also listed as the director of several other companies in the UK and sits on the board of Bryankee Holdings in Cyprus, together with Shchukin’s daughter Elena.

This company receives most of the dividends paid out from Shchukin’s Russian mining operations – money used to support the Shchukin family’s extravagant lifestyle in London. His daughter Elena, for instance, is reportedly the owner of a £3m gallery in Mayfair and a £15m mansion in Highgate.

Uzbekov and business partner Dmitryi Tsvetkov, meanwhile, have allegedly transferred huge sums of money from Russia through Cyprus to the UK.

Four years ago, Adrian Burford, a former UK Foreign Office official, testified before the UK High Court that Uzbekov and the Shchukin family planned to transfer over €1bn to Burford’s company, Fern Advisors Limited, for “investments” in the UK.

The question now – as Shchukin awaits sentencing in Russia – is whether Uzbekov and Tsvetkov will meet a similar fate in the UK.