London Daily

Focus on the big picture.
Friday, Aug 22, 2025

UK ‘weakening threat to Kremlin by failing to close property loophole’

UK ‘weakening threat to Kremlin by failing to close property loophole’

EU capitals concerned UK is not ensuring identity of real estate owners known in event of sanctions
Britain has frustrated its EU allies and weakened the west’s financial threat to the Kremlin by failing to close a loophole that will ensure London real estate remains a safe haven for Russian money, according to diplomatic sources in Brussels.

New legislation, described as the “toughest ever” by the foreign secretary, Liz Truss, gives the UK government powers to freeze the assets of individuals linked to the Russian state in the event of an invasion of Ukraine but fails to “capture” property owned via anonymous offshore structures.

The irritation in EU capitals at the perceived hole in the UK’s sanctions threat has only been exacerbated by Boris Johnson’s repeated calls in recent days for European governments to “wean” themselves off dependency on Russian gas.

“Parading around preaching at your allies is all very well if you have sorted your own house out,” said one diplomatic source. “But they haven’t. You only need to look at the number of empty properties in Kensington and Chelsea to know that.”

Truss had claimed that legislation laid in parliament on 10 February left the oligarchs with “nowhere to hide” as the UK is able to sanction entities and businesses of economic and strategic significance to the Russian government, as well as their owners, directors and trustees.

But EU capitals are concerned by the failure of the government to ensure that the identity of those who own real estate is at hand in the event of sanctions being necessary. According to the NGO Transparency International, more than 85,000 properties in the UK are owned anonymously by entities registered abroad.

The legal loophole in Europe’s punitive package has been the subject of discussions in recent days among diplomats coordinating Europe’s response to Russian aggression.

It is understood these concerns have been conveyed to London. A Foreign Office spokesman declined to comment.

On Sunday, Boris Johnson, speaking to the BBC’s Sunday Morning programme, conceded that the City of London had a problem with Russian money but claimed that the government would be able to expose the true ownership of property through a register of beneficial ownership.

Johnson told the BBC: “We are making sure that we open up the Russian doll of property ownership, of company ownership, in London and see who’s behind everything. And we’ve got to do it and we’ve got to hit very hard.”

But such a database is yet to be established despite promises made by the government since 2016. Plans for an economic crime bill had been included in the 2019 Queen’s speech but the legislation is yet to materialise.

Johnson conceded that the sanctions package “may not be enough on its own”, adding “it will be very damaging and very difficult” but “it may not be enough to deter an irrational actor”.

The west has sought to show a united front on the sanctions that would be imposed on Russia if Vladimir Putin does wage war in Ukraine, with warnings from the US, the EU and the UK of “severe costs and massive consequences”.

On Sunday, the European council president, Charles Michel, told the Munich security conference: “One thing is certain: if there is further military aggression, we will react with massive sanctions.”

The UK has for a long time been a favoured hiding place for Russian oligarchs seeking to protect their wealth. Transparency International published a report last week that identified £1.5bn-worth of property owned by Russians accused of corruption or links to the Kremlin.

A report by the House of Commons foreign affairs select committee in 2018 concluded: “London’s role in hiding the proceeds of Kremlin-connected corruption risks signalling that the UK is not serious about confronting the full spectrum of President Putin’s offensive measures.”
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
×