Why Russian Oligarchs Are Embarrassing Boris Johnson

Published on : 21/02/2022 – 09:29

The UK has long welcomed Russian oligarchs with open arms. Now that Moscow is threatening Ukraine, it has become a problem, Boris Johnson admitted yesterday to our colleagues at the BBC. What is this problem?

This “problem” has been identified for a long time. Already five years ago, the Ministry of Foreign Affairs published a report on the matter with an explicit title: “ Moscow gold. Russian corruption in the UK “. The press across the Channel speaks of “Londongrad” or “Moscow on the Thames” to evoke the overrepresentation of large Russian fortunes in the United Kingdom and the suspicions of money laundering which weigh on them. It’s a big pebble in the shoe of the British Prime Minister. He struggles to convince when he comes out in favor of strong economic sanctions once morest Moscow and the oligarchs close to the Kremlin when his own country is, in fact, the “laundry” of dirty money from Russia.

How did the UK become a hotspot for laundering Russian money?

The legal framework lends itself to this: companies offshore who invest in real estate can remain anonymous. It is a boulevard to recycle fraudulent fortunes. The wealthiest Russian citizens also benefit from the facilities offered by golden visas. Among them, many reputed billionaires close to the Kremlin. The British government estimates that $100 billion in dirty money has been laundered on British soil. Some 300,000 Russians now reside in London and their country of origin is the main source of capital poured into the City by large foreign fortunes. The NGO Transparency International estimates, for its part, that out of the 6 billion euros invested by the Russians in British real estate, 1.2 billion euros are of criminal origin.

Can the presence of Russian oligarchs in the British economy turn once morest them in the event of Western economic sanctions?

A priori yes, since their assets might be frozen, their property seized. One hundred and eighty Russian residents in the UK were sanctioned in 2014 following the annexation of Crimea; but the government had been careful to spare their interests, insisting heavily that the City be excluded from the scope of the sanctions. Because touching the belongings of Russian residents is also shooting yourself in the foot. They support thousands of people in the City in legal or financial advice: freezing their activities would penalize the British economy. Finally, the residents of “Londongrad” are also generous donors to the Conservative Party. Since Boris Johnson came to power, his party has received 2.4 million euros from them.

Will the Prime Minister really manage the problem as he said yesterday to our colleagues at the BBC?

His government has already given several tokens of goodwill. Until now, only Russian companies or personalities directly involved in Ukraine might be sanctioned. From now on, the sanctions can also apply to companies or people living in the United Kingdom and their property can be seized, specified the Minister of Foreign Affairs. The regime of golden visas has just been tightened, residence permits might even be revoked; announcements should be made in the next few days. Parliamentarians are especially waiting for the bill once morest economic crime to finally be voted on, it has been sleeping in the drawers of Downing Street for four years.

► In brief

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