Today, the United Kingdom imposed sanctions on Russia following Prime Minister Boris Johnson’sannouncement that the United Kingdom would significantly expand sanctions in response to the invasion of Ukraine. The new measures target Russian finance, with the U.K. now joining the United States in imposing a full asset freeze on VTB Bank, prominent Russian individuals, and major Russian defense companies.
The Prime Minister’s remarks indicate that over 100 additional listings of Russian oligarchs and business are on the horizon, as well as legislation authorizing sweeping new trade restrictions that bring its posture toward Russia into closer alignment with the U.S., EU, and other allies. Specifically, the Prime Minister indicated that the following measures will be implemented in order to maximize the economic costs of Russia’s actions:
- Russian banks will be excluded from the U.K. financial system and access to Sterling and clearing payments through the United Kingdom will be restricted;
- State-owned and private Russian entities will be prohibited from raising funds in the United Kingdom;
- The amount of money Russian nationals can deposit into U.K. bank accounts will be limited;
- Sanctions will be placed on Belarus;
- Aeroflot, a Russian airline, will be banned from the United Kingdom; and
- Stringent export controls, comparable to U.S. measures, will be imposed, including a ban on the export of certain dual-use items to Russia.
Legislation authorizing the new measures are expected to be laid before the U.K. Parliament next week. So far, the following Russian individuals, major Russian defense companies, and bank are now subject to U.K. sanctions, with additional designations on the way:
- Bortnikov, Denis Alexandrovich;
- Fradkov, Petr Mikhailovich;
- Georgieva, Elena Alexandrovna;
- Shamalov, Kirill Nikolaevich;
- Slyusar, Yury Borisovich;
- JSC Research and Production Corporation;
- Public Joint Stock Company “United Aircraft Corporation”;
- Public Joint Stock Company “United Shipbuilding Corporation”;
- State Corporation for the Promotion of the Development, Manufacture and Export of High Technology Products “ROSTEC”;
- Tactical Missiles Corporation Joint Stock Company; and
- VTB Bank.
Our team continues to closely monitor developments.