BORIS Johnson has announced the toughest set of sanctions ever imposed by the UK in retaliation against Russian President Vladimir Putin.
Announcing the measures in the Commons, the Prime Minister said they would choke off the ability of wealthy oligarchs to use the UK as a playground, and prevent Russia from strengthening its defences using materials from the UK.
The sanctions also aim to punish some of Putin’s allies and Russia’s wealthiest individuals, as well as the country’s largest banking institutions.
£154bn in assets from VTB bank have been immediately frozen, with powers being introduced next Tuesday to freeze the assets of all other major Russian banks.
The amount of money Russians can put in their bank accounts in the UK is also to be restricted, while all Aeroflot aircraft will be banned from landing in the UK.
More than 100 entities and individuals are to be individually sanctioned, including Vladimir Putin’s former son-in-law Kirill Shamalov.
Shamalov, who was married to Putin’s daughter Katerina Tikhonova, is Russia’s youngest billionaire.
Four other key individuals will be sanctioned and have their assets frozen.
They are Dennis Bortikov, deputy president of VTB bank; Petr Fradkov, CEO of promsvyazbank; Yury Slyusar, director or United Aircraft Corp and Helena Georgiva, chair of Novicom .
Novicom effectively bankrolls Russian defence firm Rostec, which has also been sanctioned by the UK today. The company has more than two million employees and is valued at more than £10bn.
Mr Johnson told MPs: "We will continue on a remorseless mission to squeeze Russia from the global economy piece by piece, day by day, and week by week.
“We will of course use Britain's position in every international forum to condemn the onslaught against Ukraine.”
Other measures announced by the Prime Minister include banning the export of items under a dual licence. These are items which can be used for defence or commercial purposes, for example computer parts or vehicle parts.
Next week laws will come in banning the export of high-tec items, such as semiconductors and aircraft spare parts, as well as items for the extractives industry, such as oil refinery equipment, to Russia.
Laws will come in to force on Tuesday to stop all major Russian firms from being able to raise finance on the UK markets, and ban the Russian state from raising sovereign debt on the UK markets.
All the sanctions imposed on Russia have also been extended to Belarus, Mr Johnson confirmed.
He explained that the financial and trade restrictions were in conjunction with the US and the EU, and would "constrain Russia’s military-industrial and technological capabilities for years to come."
The Prime Minister added that new laws would be introduced on unexplained wealth orders before Easter, as part of the Economic Crime Bill.
The long-awaited Bill has been a subject of criticism for Mr JOhnson, with opposition politicians accusing him of dragging his feet on the legislation.
Mr Johnson did not commit to implementing the bill in full before Easter, but said he would " set out further detail before Easter on the range of policies to be included in the full Bill in the next session – including on reforms to Companies House and a register of overseas property ownership."
He also said the National Crime Agency would be setting up its own 'Kleptocracy Cell' which would "target sanctions evasion and corrupt Russian assets hidden in the UK", giving "oligarchs in London nowhere to hide."
The UK will also lobby as part of Nato to have Russia removed from the Swift banking system. This payment system is used internationally, and if Russia was removed it would mean companies in the country would be unable to use it for transactions.
A diplomatic source said: “These are people who have international lifestyles.
“They come to Harrods to shop, they stay in our best hotels when they like, they send their children to our best public schools, and that is what's being stopped.
“So that these people are essentially persona non grata in every major Western European capital in the world. That really bites.”
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