Thursday, December 1, 2022
HomeBusinessUK Sanctions Target Russian Banks and Oligarchs

UK Sanctions Target Russian Banks and Oligarchs

New penalties proposed by Boris Johnson include the exclusion of major Russian institutions from the UK financial system, as well as the targeting of billionaires.

They were “the broadest and most punitive package of economic penalties that Russia has ever seen,” Prime Minister David Cameron told the House of Commons.

Aeroflot, Russia’s official airline, will also be barred from landing in the United Kingdom.

It comes after Moscow’s invasion of Ukraine, which began with air attacks on Thursday morning.

Mr Johnson told MPs that Russian President Vladimir Putin was a “bloodstained aggressor” whose invasion of Ukraine will “stand condemned in the eyes of the world and of history.”

The prime minister said the UK and its partners had “tried every avenue for diplomacy until the last hour” before announcing the sanctions, but that Mr Putin had always been determined to destroy Ukraine.

Mr Johnson stated that the G7 group of world leaders had committed to work together to “maximize the economic price Putin would pay for his actions.”

He also indicated that Belarus will face penalties for its involvement in the invasion of Ukraine.

Five persons thought to be part of Mr Putin’s “close circle” are among those targeted by sanctions, according to a Foreign Office statement released following Mr Johnson’s announcement.

Mr Putin’s ex-son-in-law, Kirill Shamalov, is Russia’s youngest millionaire and was previously married to his daughter Katarina.

Petr Fradkov, the CEO of the newly sanctioned Promsvyazbank and the son of the former chief of Russian Foreign Intelligence, is another target.

Rostec, Russia’s largest defense business, Tactical Missile Corporation, Russia’s main provider of air and sea missiles, and Uralvagonzavod, one of the world’s largest tank builders, are among the companies targeted, according to the Foreign Office.

It also announced plans to restrict affluent Russians’ access to UK banks, including a deposit limit of £50,000.

Mr Johnson stated that the UK and its partners’ goal was to guarantee that Mr Putin’s “hideous and brutal endeavor” failed by political, economic, and military methods.

On Thursday evening, the prime minister held his second emergency Cobra committee of the day, followed by a cabinet meeting.

He informed cabinet that the Ukrainian military was fighting back in “defiance of Putin’s attempts to enslave Ukraine,” and that experts had given the next four days a “ominous assessment.”

Foreign Secretary Liz Truss stated that the United Kingdom “would not rest until Russia’s economy has been harmed and Ukraine’s sovereignty and territorial integrity have been restored.”

The fresh sanctions build on the UK government’s announcement on Tuesday, which targeted high-net-worth people and Russian legislators who voted to proclaim Donetsk and Luhansk independent.

A number of MPs and defense professionals argued that the measures were insufficient.

US President Joe Biden imposed penalties on Russia on Thursday, including targeting its banks and individuals who “directly benefited from the Kremlin’s activities.”

Mr Johnson’s punishments were hailed by Labour leader Sir Keir Starmer, who guaranteed opposition backing for more steps.

However, he stated that improvements in the United Kingdom are required.

“For far too long, our country has served as a safe haven for money stolen from the Russian people by Putin and his cronies,” he stated.

Former Foreign Secretary Jeremy Hunt of the Conservative Party remarked that while sanctions are “very welcome,” they should not be limited to the economy and called for a “serious rethink of our military capacity.”

The chair of the Foreign Affairs Committee, Conservative MP Tom Tugendhat, asked Mr Johnson to take action against people who “enable Putin’s economy,” particularly those who sit on the boards of companies that fund the Russian president’s administration.

Sir Ed Davey, the Liberal Democrat leader, said the West “cannot remain complacent any longer” and urged for the Army’s projected troop reduction to be reversed.

Ian Blackford, the SNP’s Westminster leader, called for Russia’s “total economic isolation,” including “cleaning up the sewer of dirty Russian money” in London and halting Russia’s participation in the Swift payment system.

Russian soldiers started an assault on Ukraine on Thursday morning, breaching its borders and targeting military installations near major towns.

Ukraine has declared martial law across the country, implying that the military has temporarily assumed control.

As people try to depart Kyiv’s city, traffic bottlenecks have formed.

Meanwhile, the Home Office has announced that certain Ukrainian nationals in the United Kingdom will be able to renew their visas.

Seasonal agricultural laborers will have their visas automatically renewed until the end of 2022, and those qualified for points-based work visas will be able to prolong their stay or transfer from visiting visas.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments