Boris Johnson has backed down on plans to allow Russian oligarchs 18 months to register ownership of luxury properties in the UK, slashing the proposed “grace period” to six months.
And he announced plans to streamline the process of sanctioning individuals with links to Vladimir Putin, by removing the legal requirement for government lawyers to show that measures are “appropriate” before implementing them.
But the changes fall well short of demands from Labour, who had called for a maximum 28-day delay before registers must be updated to identify the true owner of a property rather than a shell company.
Shadow foreign secretary David Lammy said the government’s tardiness in dealing with Russian “dirty money” in London has left the UK trailing behind the US and EU in imposing sanctions on Putin’s cronies in response to the invasion of Ukraine.
Mr Johnson’s decision to amend the Economic Crimes Bill before it comes before the Commons on Monday amounts to an admission that Britain’s sanctions regime has been less able to respond swiftly than its American and European allies, who have already sanctioned hundreds of individuals.
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Legislation passed in the wake of Brexit to allow the UK to operate its own regime independent from the EU included measures requiring a watertight legal case to be established for each individual targeted – something which officials admit could take months.
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Ukraine crisis 23 January 2022 An Ukrainian Military Forces serviceman, watches through spyglass in a dugout on the frontline with Russia-backed separatists near Gorlivka, Donetsk region
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Ukraine crisis 23 January 2022 An Ukrainian Military Forces serviceman, caresses a dog in a dugout on the frontline with Russia-backed separatists near Gorlivka, Donetsk region
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Ukraine crisis 23 January 2022 An Ukrainian Military Forces serviceman, looks on in a dugout on the frontline with Russia-backed separatists near Gorlivka, Donetsk region
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Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 Mariana, 52, a marketing researcher who for the past two years has been a volunteer in a Kyiv Territorial Defence unit, trains on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 A civilian participant in a Kyiv Territorial Defence unit waits to fend off a mock attack while training on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 An instructor trains members of Ukraine’s Territorial Defense Forces, volunteer military units of the Armed Forces, in a city park in Kyiv, Ukraine
AP
Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
Getty Images
Ukraine crisis 22 January 2022 Mariana (C), 52, a marketing researcher who for the past two years has been a volunteer in a Kyiv Territorial Defence unit, trains on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 A member of Ukraine’s Territorial Defense Forces, volunteer military units of the Armed Forces, trains in a city park in Kyiv, Ukraine
AP
Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
Getty Images
Ukraine crisis 22 January 2022 Members of Ukraine’s Territorial Defense Forces, volunteer military units of the Armed Forces, train in a city park in Kyiv, Ukraine
AP
Ukraine crisis 22 January 2022 Civilians, including Tatiana (L), 21, a university veterinary medicine student who is also enrolled in a military reserve program, participate in a Kyiv Territorial Defence unit training on a Saturday in a forest in Kyiv, Ukraine
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Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
Getty Images
Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
Getty Images
Ukraine crisis 22 January 2022 Civilian participants in a Kyiv Territorial Defence unit train on a Saturday in a forest in Kyiv, Ukraine
Getty Images
Ukraine crisis 21 January 2022 A poster of Russian President Vladimir Putin is used as target practice along a trench on the frontline with Russia-backed separatists near Zolote village, in the Lugansk region
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Ukraine crisis 20 January 2022 Russian servicemen standing at attention upon their arrival for the joint drills in Belarus
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Ukraine crisis 20 January 2022 Russian infantry fighting vehicles upon their arrival for the joint drills in Belarus
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Ukraine crisis 19 January 2022 A Russian armored vehicle drives off a railway platform after arrival in Belarus
AP
Ukraine crisis 19 January 2022 A service member of the Ukrainian Armed Forces stands next to a BM-21 “Grad” multiple rocket launcher during tactical military exercises at a shooting range in the Kherson region, Ukraine
via REUTERS
Ukraine crisis 19 January 2022 A Russian armored vehicle drives off a railway platform after arrival in Belarus
AP
Ukraine crisis 19 January 2022 A satellite image shows equipment deployed at Klimovo Railyard in Klimovo, Russia
via REUTERS
Ukraine crisis 19 January 2022 A satellite image shows an closer view of tank artillery and support equipment from the deployed units in Yelnya (130km/80miles east of Russia/Belarus border)
Satellite image ？？2022 Maxar Tech
Ukraine crisis 19 January 2022 A satellite image shows a close view of tanks artillery and tents in the Pogonov training area of Voronez, Russia
Satellite image ？？2022 Maxar Tech
Ukraine crisis 18 January 2022 A convoy of Russian armored vehicles moves along a highway in Crimea
AP
Ukraine crisis 18 January 2022 Yura and Viktor, Ukrainian soldiers with the 56th Brigade in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Anatoliy, a Ukrainian soldier with the 56th Brigade, in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Anatoliy and other Ukrainian soldiers with the 56th Brigade in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Ukrainian soldiers with the 56th Brigade walk past a destroyed building on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Ukrainian Military Forces servicemen stand in a trench on the frontline with Russia-backed separatists near Verkhnetoretske village, in the Donetsk region
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Ukraine crisis 18 January 2022 Mykola, a Ukrainian soldier with the 56th Brigade, near the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Mykola and Viktor, Ukrainian soldiers with the 56th Brigade, in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Ira and Katya, Ukrainian soldiers with the 56th Brigade, on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Ira, Katya and Alyona, Ukrainian soldiers with the 56th Brigade, on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 A convoy of Russian armored vehicles moves along a highway in Crimea
AP
Ukraine crisis 18 January 2022 Russian troop train transporting military vehicles arriving for drills in Belarus
MINISTRY OF DEFENCE REPUBLIC OF
Ukraine crisis 18 January 2022 Russian servicemen preparing military vehicles to unload from a troop train for the joint drills in Belarus
MINISTRY OF DEFENCE REPUBLIC OF
Ukraine crisis 18 January 2022 Russian troop train transporting military vehicles arriving for drills in Belarus
MINISTRY OF DEFENCE REPUBLIC OF
Ukraine crisis 18 January 2022 Russian servicemen holding a traditional Belarus’ bread and salt upon their arrival for the joint drills in Belarus
MINISTRY OF DEFENCE REPUBLIC OF
Ukraine crisis 18 January 2022 Mykola, a Ukrainian soldier with the 56th Brigade, poses for a portrait in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 18 January 2022 Mykola, a Ukrainian soldier with the 56th Brigade, in a trench on the front line in Pisky, Ukraine
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Ukraine crisis 17 January 2022 Ukrainian soldiers walk in a trench near the front line in the village of New York, formerly known as Novhorodske, Ukraine
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Ukraine crisis 17 January 2022 An Ukrainian soldier walks in a trench near the front line in the village of New York, formerly known as Novhorodske, Ukraine
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Ukraine crisis 17 January 2022 An Ukrainian soldier uses a hand-held periscope to view the positions of Russian-backed troops in a trench near the front line in the village of New York, formerly known as Novhorodske, Ukraine
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Removing the “appropriateness” test will allow the designation of groups, permitting the UK to align its sanctions lists with those imposed by Washington and Brussels.
Those named could have travel bans imposed as well as asset freezes which prevent them from selling, renting, visiting or even repairing UK properties with a total estimated value of well over ￡1bn. Deputy prime minister Dominic Raab has even suggested the homes could be seized to house Ukrainian refugees.
London has so far sanctioned only 15 oligarchs, including Alisher Usmanov, who has had financial links with Arsenal and Everton football clubs.
Critics have warned that delays will allow billionaires who fear being put on the UK blacklist time to sell off assets and move their money abroad. Putin associate Roman Abramovich has announced plans to sell Chelsea FC, though there has been no official indication that he is being considered for sanctions.
Meanwhile, ministers said that keeping a six-month grace period for property registration would help crack down on money while giving people with legitimate reasons to hold property in overseas entities time to comply.
Mr Johnson said: “The UK has led the way with the toughest package of sanctions against Putin’s regime and we’re bolstering this with new powers in our arsenal to go further and faster.
“We will ramp up the pressure on those criminal elites trying to launder money on UK soil and close the net on corruption. They will have nowhere to hide.”
But Mr Lammy responded: "It is totally unacceptable that Putin-linked oligarchs who should have already faced sanctions are being allowed to move their money around because of government incompetence.
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"Ministers should have introduced the laws needed to work in lock-step with our allies and partners months ago, not be left sanctioning hundreds fewer individuals and entities than the EU and the US.
"We welcome the government’s U-turn under pressure from Labour to tighten the law so we can move on more oligarchs tied to Putin’s regime, but we must also move faster, acting against these individuals in ？days not months.”