London Daily

Focus on the big picture.
Friday, Aug 01, 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
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
×