UK’s Russia ‘nowhere to hide’ sanctions vow undermined by ‘Londongrad’ reputation
The United Kingdom’s foreign secretary, Liz Truss has announced new sanctions powers in response to the current tensions on the Ukrainian border. ‘Whether you support Russia’s aggressive actions against Ukraine, or you’re of wider significance to the Kremlin, we will have the power to sanction you. Nothing is off the table and there will be nowhere to hide,’ she said.
Addressing Parliament on 31 January, Truss said that, until now, ‘the UK has only been able to sanction those linked to the destabilisation of Ukraine,’ but that under proposed legislation, the government would have ‘the power to sanction a much broader range of individuals and businesses.’
‘We will be able to target any company that is linked to the Russian state, engages in business of economic significance to the Russian state, or operates in a sector of strategic significance to the Russian state,’ said Truss. ‘Not only will we be able to target these entities, we will also be able to go after those who own or control them. This will be the toughest sanctions regime against Russia we have ever had, and it is the most radical departure in approach since leaving the European Union.’
Laying out this legislation, she said, would enable the UK ‘to act in concert with the United States and other partners rapidly, multiplying our collective impact. We will use these new powers in a targeted manner, designed to damage the interests of those who bear greatest responsibility for Russia’s actions and exert the greatest pressure to change course. I will not say now exactly who we may target, or with what measure, but Moscow should be clear that we will use these new powers to maximum effect if it pursues its aggressive intent towards Ukraine.’
However, the UK’s reputation for being a ‘friendly’ destination for Russian money is thought by some observers to have already undermined the extent to which it can take strong measures against its intended targets.
In 2020, the UK Parliamentary Committee on Intelligence and Security published a report which explored Russia’s interest in and influence on the United Kingdom, including aspects such as lobbying, and the spreading of disinformation.
Inter alia, the report found ‘Russian influence in the UK is “the new normal”, and there are a lot of Russians with very close links to Putin who are well integrated into the UK business and social scene, and accepted because of their wealth. This level of integration – in “Londongrad” in particular – means that any measures now being taken by the Government are not preventative but rather constitute damage limitation.’
In response to Truss’s announcement, shadow secretary of state David Lammy asked whether the foreign secretary could ‘confirm that the UK subsidiaries of any new sanctioned targets would not be carved out of scope?’ adding, ‘London is the destination of choice for the world’s kleptocrats. We are home to the services and enablers who help corrupt elites to hide their ill-gotten wealth. We have a system of corporate transparency that permits the products of larceny on a grand scale to be hidden under our noses – and the result is the embarrassing spectacle of President Biden being warned that the widespread presence of suspect Russian money in the UK could jeopardise Britain’s response to this crisis.’
See the debate at:
And the ‘Russia Report’ (redacted in places) at:
