U.K. Threatens to Block Russian Companies Raising Money in London

Britain threatened on Tuesday to block Russian companies from raising capital in London and to expose property and company ownership if Russia invades Ukraine, saying the West must remain united on the cost to Moscow of any conflict.

Last week Britain put in place new legislation enabling it to impose broader sanctions than it previously could on Russian individuals and entities determined to be involved in destabilizing Ukraine or supporting the Russian government. Read full story

This follows years when London was viewed as a particularly favorable destination for Russian oligarchs and their immense assets, with a 2020 U.K. parliamentary report saying that such a move had allowed illicit finance to be recycled through what has been referred to as the London “laundromat.”

Russia, which is demanding a set of security guarantees from the West, says it has no plans to invade Ukraine and on Tuesday Moscow said some military units were returning to their bases. Read full story.

British Prime Minister Boris Johnson told reporters the government would target Russian banks and Russian companies.

“We’re…making sure that we take steps, or take even more steps, to unpeel the façade of Russian property holdings whether in this city or elsewhere…, unpeel the façade of Russian ownership of companies,” he said.

“And also take steps to stop Russian companies from raising capital on London financial markets. So that is a very, very tough package.”

Britain has not spelled out who would fall under the sanctions, but has pledged that there would be nowhere for Russian oligarchs to hide.