Foreign Secretary announces 65 new Russian sanctions to cut off vital industries fuelling Putin’s war machine

  • Liz Truss has announced 65 sanctions, targeting strategic industries, banks and business elites.

  • The sanctions target those aiding Russia’s invasion of Ukraine including the Wagner Group, multiple defence companies and Russian Railways

  • The UK has now sanctioned over 1,000 individuals and businesses under the Russia sanctions regime since the invasion

Foreign Secretary Liz Truss has announced 65 new Russian sanctions today (Thursday 24 March) against a range of key strategic industries and individuals. The UK has now sanctioned over 1,000 individuals and businesses under the Russia sanctions regime since the invasion.

Today’s sanctions target key industries supporting Russia’s illegal invasion, including Russian Railways and defence company Kronshtadt, the main producer of Russian drones. The Wagner Group – the organisation Russian mercenaries reportedly tasked with assassinating President Zelenskyy – has also been sanctioned.

Six more banks are targeted, including Alfa Bank whose cofounders include previously sanctioned oligarchs Mikhail Fridman, Petr Aven and German Khan. The world’s largest diamond producer Alrosa is also sanctioned.

Individuals sanctioned include the billionaire oil tycoon Eugene Shvidler, founder of Tinkoff bank Oleg Tinkov, Herman Gref, the CEO of Russia’s largest bank Sberbank, and Polina Kovaleva, Foreign Minister Lavrov’s step daughter. Galina Danilchenko, who was installed by Russia as the ‘mayor’ of Melitopol is also sanctioned – the first time an individual has been sanctioned for collaboration with Russian forces currently in Ukraine.

Foreign Secretary Liz Truss said:

These oligarchs, businesses and hired thugs are complicit in the murder of innocent civilians and it is right that they pay the price. Putin should be under no illusions – we are united with our allies and will keep tightening the screw on the Russian economy to help ensure he fails in Ukraine. There will be no let-up”.

All those sanctioned today will have their assets in the UK frozen which means no UK citizen or company can do business with them, and individuals subject to travel bans are also prohibited from travelling to or from the UK.

Today’s sanctions will bring the total global asset value of the banks the UK has sanctioned since the invasion to £500bn and the net worth of the oligarchs and family members in excess of £150bn.

The provisions brought in by the Economic Crime Act have streamlined the previous legislation so the UK can respond even more swiftly and effectively to the current crisis. The government will continue to tighten the screw and use sanctions to degrade the Russian economy on a scale that the Kremlin, or any major economy, has never seen before.

The UK has led the international sanctions effort, cutting off whole sectors of the Russian economy by targeting its defence companies, its trade and transport sector, and working with allies to exclude Russia from the SWIFT financial system.

Key individuals and businesses sanctioned today:

  1. ALFA-BANK JSC (Alfa-Bank), the largest of the private banks in Russia and is based in Moscow. Alfa-Bank ranks among the top 10 largest banks in terms of capital in Russia and Ukraine. It is a distinct entity to distinct from Alfa-Bank (Ukraine) which has not been sanctioned.

  2. Alrosa, the world’s largest diamond mining company specializing in exploration, mining, manufacture, and sale of diamonds. It is headquartered in Mirny, Russia and its market capitalization is reported as an estimated £4.69bn.

  3. Eugene Markovich Shvidler, is a billionaire businessman with close business links to Roman Abramovich (designated by the UK on 10 March 2022). His net worth is reported as an estimated £1.2 billion.

  4. Oleg Tinkov, founder of Tinkoff Bank. His net worth is reported as an estimated £3.4 billion.

  5. Herman Gref, Chief Executive Officer of Sberbank, the largest Russian bank. Gref is a close advisor of President Putin since they started working together in the St Petersburg Government in the 1990s. He served as Putin’s Minister of Economic Development and Trade between 2000 and 2007, before taking over at Sberbank.

  6. Oleg E Aksyutin, the Deputy Chairman of the Management Board at Gazprom PJSC, the Russian multinational energy corporation.

  7. Didier Casimiro, the First Vice President of Rosneft, the Russian State oil company.

  8. Zeljko Runje, the Deputy Chairman of the Management Board and First Vice President for Oil, Gas, and Offshore Business Development of Rosneft

  9. Galina Danilchenko, installed as ‘mayor’ of Melitopol by Russian authorities after their military occupied the city and kidnapped the legitimate mayor. This is the first designation by any partner country for collaboration with the Russian military in Ukraine since the invasion.

  10. Polina Kovaleva, stepdaughter of Russian Foreign Minister, Sergey Lavrov. She reportedly owns a c.£4m property in London. This sends a strong signal that those benefiting from association of those responsible for Russian aggression are in scope of our sanctions.

Notes:

Asset freeze: an asset freeze prevents any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held or controlled by the designated person and which are held in the UK. It will also prevent funds or economic resources being provided to or for the benefit of the designated person.

Travel ban: a travel ban means that the designated person must be refused leave to enter or to remain in the United Kingdom, providing the individual to be an excluded person under section 8B of the Immigration Act 1971.

Transport sanctions: recently introduced powers make it a criminal offence for any Russian aircraft to fly or land in the UK, and give the Government powers to remove aircraft belonging to designated Russian individuals and entities from the UK aircraft register, even if the sanctioned individual is not on board. Russian ships are also banned from UK ports.

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