Ministers have frozen the assets of more than 300 more Russians today, including 50 oligarchs and members of their families, after a new law came into effect making it easier to impose sanctions.
Among those who will now be subject to financial restrictions are Russian businessmen with a combined estimated worth of more than £100 billion.
They include Mikhail Fridman and Petr Aven, whose LetterOne investment company owns the health food retailer Holland & Barrett, as well as Spain’s Dia supermarket chain and the German energy group Wintershall Dea.
Also on the list is Andrey Melnichenko, a Russian fertiliser and coal magnate. He was one of the first oligarchs to move to London, buying a flat on Berkeley Square from Christian Candy in 2002 for £2.9 million. He also owns the Harewood estate near Ascot, which has been valued at £24 million.
Britain’s new sanctions also include a significant number of senior Russian officials and military commanders involved in the invasion of Ukraine. Dmitry Peskov, Putin’s spokesman who has publicly defended the Russian invasion, has been sanctioned as has Sergei Shoigu, the defence minister who has overseen Putin’s war effort in Ukraine.
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Ministers had been criticised for being too slow to introduce sanctions after targeting only about 20 individuals with links to Putin and the Russian state.
In contrast the EU has sanctioned more than 50 additional Russian businessmen, military figures and even journalists for their role in supporting the regime. Both the UK and the EU have sanctioned more than 350 members of the Russian parliament who voted in support of the invasion of Ukraine.
Ministers have pledged to go “faster and harder” on those closest to Putin after the passing of the Economic Crime Bill, which became law today.
“We are going further and faster than ever in hitting those closest to Putin – from major oligarchs, to his prime minister, and the propagandists who peddle his lies and disinformation,” Liz Truss, the foreign secretary, said.
“We are holding them to account for their complicity in Russia’s crimes in Ukraine. Working closely with our allies, we will keep increasing the pressure on Putin and cut off funding for the Russian war machine.”
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Also announced today was the news that imported Russian vodka will be given a punitive 35 per cent tax rate, and British companies such as Rolls-Royce and Burberry will be banned from exporting to Moscow.
As part of the plans outlined by ministers, the exporters of luxury vehicles and high-end fashion will be prevented from sending their goods to Russia. The ban will also affect UK auction houses, who will not be able to export works of art to clients based in Russia.
At the same time the government will impose 35 per cent tariffs on £900 million worth of Russian imports including vodka, furs and other consumer goods. The move will also cover industrial exports of metals such as iron, steel and aluminium as well as fertilisers and products such as sunflower oil.
Ministers said the sanctions had been designed to cause “maximum harm to Putin’s war machine” while “minimising the impact on UK businesses”.
Total British exports to Russia amounted to £4.3 billion in 2021. Of this, £386 million was mostly high-end cars.
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Imports from Russia amounted to £11.6 billion of which £8.4 billion was oil and gas imports, which will not be affected.
The move is being made in conjunction with the European Union, United States, Japan and Canada.
Rishi Sunak, the chancellor, said the sanctions would help to exert “maximum economic pressure” on Putin’s regime.
“Our new tariffs will further isolate the Russian economy from global trade, ensuring it does not benefit from the rules-based international system it does not respect,” he said. “These tariffs build on the UK’s existing work to starve Russia’s access to international finance, sanction Putin’s cronies and exert maximum economic pressure on his regime.”
Anne-Marie Trevelyan, the international trade secretary, added: “The UK stands shoulder to shoulder with our international partners in our determination to punish Putin for his barbaric actions in Ukraine, and we will continue our work to starve his regime of the funds that enable him to carry them out.
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“The World Trade Organisation is founded on respect for the rule of law, which Putin has shown he holds in contempt. By depriving his government of key benefits of WTO membership, we are denying him further resource for his invasion.”
In 2020 Britain imported about £40 million worth of drinks from Russia including about 3.4 million litres of vodka, which did not attract tariffs. Russian vodka brands that could be affected include Beluga, which retails for about £30, and Mamont, which comes in a distinctive curved bottle and retails for about £35.
This month it was announced that JJ Whitley vodka, which was previously manufactured in St Petersburg, would now be made in Britain as a result of the Ukrainian invasion.
However Smirnoff — perhaps the most famous vodka brand — will not be affected as it is made in many countries apart from Russia. Stolichnaya vodka was rebranded on Monday as Stoli to avoid association with Putin’s Russia. It is now produced in Latvia except for a specially labelled Stolichnaya that is distilled in Russia for Russians only.
Under existing international trade rules Britain cannot impose bigger tariffs on Russian exports than they do on other countries’ products under the “most favoured nation” principle at the WTO.
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But the UK and other countries are using an exemption in its legislation that allows members to take action to “protect their security interests” during a war.
Russian imports to be hit by 35 per cent tariffs
Iron, steel
Fertilisers
Wood
Tyres
Railway containers
Cement
Copper, aluminium, silver, lead, iron ore
Residue/food waste products
Beverages, spirits and vinegar (this includes vodka)
Glass and glassware
Cereals
Oil seeds
Paper and paperboard
Machinery
Works of art, antiques
Fur skins and artificial fur
Ships
White fish
