2.24.22
Boris Johnson has said it is time to “squeeze Russia from the global economy, piece by piece,” as he announced a wide-ranging sanctions package against Moscow, including freezing the assets of all major Russian banks and banning hi-tech exports. Pointing to sharp declines in Russian stock markets and the value of the rouble since the invasion of Ukraine, Johnson said, “we will continue on a remorseless mission to squeeze Russia from the global economy piece by piece, day by day and week by week. He had earlier tried and failed to convince fellow G7 leaders to shut Russia out of the Swift global payments system, though his spokesperson said he would continue to press the issue in the coming days. Johnson announced 10 measures the UK was taking immediately. The assets of all major Russian banks in the UK will be frozen, including VTB, the country’s second largest bank with assets totalling £154bn. Individual sanctions will be imposed on over 120 individuals, entities and subsidiaries, including Rostec, the country’s biggest defence company, which exports £10bn in arms a year, as well as four other defence companies. Legislation is expected be tabled next week to ban major Russian companies from raising finance on UK markets and to prevent Moscow from raising sovereign debt in London.
Oligarchs who will be sanctioned include Putin’s former son-in-law Kirill Shamalov, Russia’s youngest billionaire; Denis Bortnikov, the deputy chair of VTB Bank’s management board; and Yury Slyusar, the director of the United Aircraft Corporation. The Russian airline Aeroflot will be banned from landing in the UK. 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. The UK will suspend and prohibit all dual-use export licences to Russia, which covers items that could have civilian or military use. There will also be legislation to prohibit a wide range of hi-tech exports to Russia, including semiconductors, aircraft parts such as Rolls Royce jet engines, and oil refinery equipment. Number 10 said it would set out more detail in the coming days about new legislation to limit the deposits that all Russian nationals can hold in UK bank accounts to £50,000, intended to choke off the ability of Russians to raise finance and keep their money in London. The measures will also apply to Belarus, which Russian forces have used to invade Ukraine.