Britain has threatened to shut down Russian companies and banks to access US dollars and British pounds, restrict London’s growth and expose what Johnson calls a “Russian doll” of real estate.
Ministers plan stricter sanctions against Russia, targeting UK-based oligarchs, high-tech sales, and private debt after a package unveiled by Boris Johnson was attacked by Conservative MPs for failing to hit Vladimir Putin’s power base hard enough.
On Tuesday, the UK prime minister announced the suspension of assets in five Russian banks and three high-value individuals after Putin ordered troops to enter Ukraine.
After President Vladimir Putin ordered troops sent to two rebel strongholds in eastern Ukraine, Britain imposed sanctions on five Russian banks and three high-profile individuals, including Gennady Timchenko.
“This is the first phase, the first phase of what we intend to do,” Prime Minister Boris Johnson told parliament.
“Any assets they have in the UK will be frozen, and affected people will be barred from leaving here,” Johnson said of the penalties.
Timchenko is a close friend of Russian President Vladimir Putin. Johnson said that Rossiya had liquidated the IS Bank, General Bank, Promsvyaz bank, and the Black Sea Bank.
“We have to prepare for the next stages of Putin’s plan,” Johnson told the British Parliament. “Putin is setting up an excuse to offend completely.”
But former Tory leader Iain Duncan Smith was among MPs who said Putin should be beaten more now than he could control himself and fix the roads over time. Mark Harper, the former chief whip, called for “more and more serious steps even though President Putin is no longer in trouble.”
Keir Starmer said Putin had already crossed the line, adding: “If we do not respond with a full set of sanctions now, Putin will also remove the message that the benefits of violence outweigh the costs.”
Tom Keatinge, Russia’s defense thinker, said: “I think we can safely say that we took the gunman and fired. The whole reason for discussing sanctions in recent weeks has been to prevent Putin, and if, when we get the first opportunity to apply these sanctions, we only tickle his feet, then what is the point? Once we are strong, I am afraid we will lose it today.”
Western officials defended the package, compiled in meetings with Washington and Brussels, saying it was “the first step that will gradually separate Russia from the global financial system.”
The UK’s planned future measures will affect the banking and finance sectors, prevent the export of high-tech goods and punish large numbers of people and companies in the defense, energy, and other vital areas in Russia.
Another proposal is to stop the export of chips, computers, consumer electronics, telecommunications equipment, and other products made globally, using the US, UK, or EU technology. The same action was taken against Chinese technology company Huawei. Officials were reluctant to say what would cause the subsequent sanctions.
Johnson said that the banks had been liquidated by Rossiya, IS Bank, General Bank, Promsvyazbank, and the Black Sea Bank. Promsvyazbank is Russia’s 10th largest bank, providing 70% of government contracts signed by Russia’s defense ministry.
The three men are Gennady Timchenko, Igor Rotenberg and Boris Rotenberg. We have previously approved all three. Treasury officials did not have details of the average property of individuals or banks held in the UK.
The sanctions list quote Timchenko’s shares in Bank Rossiya. He is also a board member and shareholder of PAO Novatek, Russia’s largest gas producer who the Russian government does not directly control.
Novatek is one of 31 Russian companies listed on the London Stock Exchange, which gives international investors easy access. The price of its London listings fell 8% on Tuesday, a sharp drop from shares in Moscow’s main Novatek list, which dropped by only 1.2%, raising concerns about London’s list.
When challenged by Staff why the sanctions did not continue, including identifying Chelsea football club owner Roman Abramovich, Johnson told Commons that the millionaire was “already facing penalties” but later admitted he had “spoken badly.” Downing Street said the prime minister would prepare a parliamentary record.
Asked why he played tennis with Russian business people to raise money for the Conservative team, Johnson said he was determined to ensure the club’s funding came only from the UK.
Confirming the sanctions on Tuesday, the prime minister said of Putin: “In one fierce speech, he denied that Ukraine has a true nationalist culture, saying that it poses a threat to Russia’s security and throws many other false charges again.”
Russia’s once-powerful economy is now smaller than Italy’s based on IMF data, with an estimated GDP of $ 1.7 trillion.
Many Tory MPs have called for more weapons to be sent to Ukraine, and Johnson stressed that the UK would support Ukraine’s resistance
Edited by- Subbuthai Padma
Published by- Radhika. N
