UK set to freeze assets of more than 100 oligarchs and Putin cronies in massive new sanctions drive 

Hundreds of Russian oligarchs, organisations and individuals are set to be hit with sanctions from the Government after a fast-tracked bill to target ‘dirty money’ in the UK is passed.

The sanctions will see the assets of those targeted frozen as the Government also prepares to impose tariffs on a number of Russian goods including vodka and caviar. 

The Government has been criticised over the speed of the roll out of the UK’s sanctions on wealthy individuals, with questions asked over why the US and the EU have been able to move more quickly.

As a result, new laws to tackle ‘dirty money’ were fast-tracked through Parliament in a bid to target Russian oligarchs over the Ukraine invasion. 

Royal assent was granted for the Economic Crime (Transparency and Enforcement) Act as the Houses of Parliament sat beyond midnight to ensure the measures became law.

The UK Government is now expected to announce further sanctions in response to Russia’s aggression against Ukraine.

The legislation is set to establish a new register of overseas entities requiring foreign owners of property in the UK to declare their true identity.

The register would need to be updated each year and punishments for failing to declare details, or submitting false information, would result in the asset being frozen and it cannot be sold or rented out.

The passage of the Act through Parliament was aided by several concessions by ministers in the Lords, including the Government agreeing to a call by opposition parties to scrap exemptions from a foreign ownership of property register aimed at combatting the laundering of illicit cash.

Ministers also committed to the rapid implementation of measures in the Act and to give an update to Parliament on progress within six weeks.

The administration promised to bring forward further legislation to tackle economic crime early in the next parliamentary session and carefully consider amendments put forward.

The Act went through the Lords without a vote despite concerns over the length of time being given to comply with the new register, requiring foreign owners of property in the UK to declare their true identity.

The Government had reduced the grace period from 18 months to six, but critics had argued this was still too long and pressed for it to be cut further.

However, business minister Lord Callanan argued curbing the transition period risked opening up the register to legal challenge and instead proposed a new disclosure requirement to prevent asset-flight ahead of the new rules being brought in.

This would force any overseas entity disposing of any property from February 28 this year to provide information about its beneficial ownership.

Lord Callanan said: ‘Crucially, it addresses the concerns that corrupt people must not be allowed to sell up and escape transparency this register would bring.

‘It’s my submission this would be more effective than any further reduction in the transition period, which risks opening up the provisions of the register to legal challenge.’

The bill, which will make it easier for the Government to impose sanctions, was fast-tracked into law in a bid to target Russian oligarchs over the Ukraine invasion.

Foreign Secretary Liz Truss is expected to name hundreds of individuals and organisations with links to Russia who will be added to the list of those subject to UK sanctions.

The UK has already targeted a number of prominent individuals and entities with ties to Russia, including Chelsea FC owner Roman Abramovich, since Putin’s invasion of Ukraine. 

According to the Times, the Government is also expected to slap £5billion of tariffs on Russian vodka, fur and other goods as part of the massive new sanctions drive.

From today, Russian vodka, including popular brands such as Russian Standard, will be banned as part of the ongoing economic sanctions against the country.

Other Russian luxury goods such as caviar and diamonds will also be banned.

According to the Sun, Britain will place tariffs on the sale of supercars, cigars and other luxury goods to Russia in a coordinated move with the EU and G7 nations to clobber the Kremlin.

After they faced criticism last week, the Government proposed a series of amendments to the ‘dirty money’ bill in order to toughen it up.

These included the Government agreeing to a call by opposition parties to remove the ability of ministers to exempt an individual from the requirements of a foreign ownership property register on the grounds of ‘the economic wellbeing of the United Kingdom’.

Ministers also committed to the rapid implementation of measures in the Bill and to give an update on progress within six weeks.

The administration further promised to bring forward further legislation to tackle economic crime early in the next parliamentary session and carefully consider amendments put forward.

It comes after Liz Truss last week announced the UK has imposed sanctions on 400 of the 450 members of the Russian Duma who supported Putin’s invasion, in line with the EU. 

All of the people sanctioned have been banned from travelling to the UK and they will be unable to access any assets they may hold in Britain.

They have also been prohibited from conducting business in the UK.

Individuals that could be targeted include oligarchs Mikhail Fridman and Petr Aven, the men behind the company which owns Holland & Barrett and who have resigned from its advisory board after being sanctioned internationally.

According to the Times, senior Russian officials and military commanders — including Putin spokesman Dmitry Peskov – could also face action.