Britain has frozen more Russian bank assets than any other country as part of the international wave of sanctions against Vladimir Putin’s invasion of Ukraine, ministers have said.
The Foreign Office revealed the UK had frozen a total of £258.8 billion of bank assets, compared to £240 billion by the US and £33.8 billion by the EU.
The figures came after the UK Government faced criticism over the speed with which it was imposing sanctions on individuals in Britain linked with the Russian president’s regime.
Britain has imposed sanctions on individual members of the Russian and Belarusian elite, including Putin and at least 12 banks and companies.
At the same time, the British Government is to push for an international limit on import of Russian gas in an attempt to limit Western reliance on its energy supplies.
Ministers have spoken about targeting more than 100 individuals and companies, but have so far named only around 14 individual Russians – leading to criticism of Liz Truss, the Foreign Secretary.
But on Saturday, a Foreign Office source said: “Liz’s focus has been on hitting banks and financial institutions, which have a bigger impact on the Russian economy than sanctioning single individuals. That’s the strategy. We’ve gone further than the EU and US on bank asset freezes, which is where Russia really feels the pinch.”
The source added: “Targeting oligarchs is important – but it’s by no means the full picture or the most effective way to debilitate Russia’s economy and war machine.
“The emergency legislation we’re bringing in via the economic crime bill will allow us to move faster against oligarchs. It’s something Liz has pushed hard for. More oligarchs will be sanctioned soon as part of Liz’s ‘hit list’ that we’re working our way through. She’s relentlessly focused on keeping up the pressure on sanctions.”
Asked during a visit to Brussels why Britain was being slower than other countries on sanctions, Ms Truss said on Friday: “We’ve sanctioned more companies than our counterparts across the world, we’ve just sanctioned two more major oligarchs last night. What I am doing is looking at how we could speed up that process to make even more progress on that front.”
Ministers are set to unveil another tranche of sanctions this week, as part of an approach likely to mean asset freezes rolled out in batches
It is understood Ms Truss will also push for a ceiling on gas imports which can be lowered over time.
A source close to Ms Truss said: “Liz thinks it’s vital that Europe – and free democracies full stop – reduce strategic dependence on Russian energy.
“One of the things being looked at is imposing a ceiling on Russian energy imports and bringing that ceiling down over time so the economic impact isn’t felt harshly.
“Liz’s view is that defending European security and fundamental values like the sovereignty of nations is worth some economic pain, especially if it’s managed and mitigated properly.”
Ms Truss is also understood to be pushing for a total ban on Russia using Swift, after world leaders agreed to exclude some Russian banks from the financial system.
However, government insiders have warned that Michael Gove, the Housing Secretary, is taking a “Jeremy Corbyn approach” in his bid to seize oligarchs’ homes without compensation.
A government source warned against undermining “the right of an individual to own their own property” as part of the crackdown on individuals and money linked to Putin. An ally of Boris Johnson, the Prime Minister, also warned against any move that infringes on property rights.
Last week, The Telegraph disclosed that Mr Gove was pushing to seize lavish UK homes owned by Putin’s allies. It followed independent research suggesting that £1.5 billion worth of property has been bought by Russians accused of corruption or links to the Kremlin since 2016.
But the proposals are being resisted within Whitehall by figures who point out that they go much further than traditional sanctions that result in such assets being frozen – meaning they cannot be sold or mortgaged – and individuals being banned from entering the country. Asset freezes do not involve a change in ownership or confiscation.
One government source said: “You’re fiddling with property rights, which are a solemn view of any democratic country – the right of an individual to own their own property.
“It’s the Jeremy Corbyn approach of nationalising industry – requisitioning without compensation.”
However, another government source insisted: “Obviously property rights are a very basic part of our constitutional norms and therefore any attempts to do anything wouldn’t be taken lightly.” The source added: “The Prime Minister is very behind this and really keen on it.”
