Frozen Russian Assets: Ukraine

Rachel Blake Excerpts

Monday 6th January 2025 Commons Chamber

[Rachel Blake (Cities of London and Westminster) (Lab/Co-op)]

I thank the hon. Member for Tunbridge Wells (Mike Martin) for securing this debate. I speak today as the constituency Member of Parliament for many of the assets we are discussing. It is easy to throw around the many billions of Russian-owned wealth across the country; for that reason, when referencing the luxurious wealth of Putin’s cronies, all of my calculations today are going to be in the unit of Storm Shadow missiles, each of which costs £800,000. These are the weapons of war that we talk about when we discuss funding the conflict in Ukraine.

In total, 28,375 Storm Shadows’ worth of Russian wealth is sanctioned, with profits from that wealth used to repay the extraordinary revenue acceleration funding the UK’s support of Ukraine. To put that in perspective, the UK’s total stock of Storm Shadows was estimated in 2023 to sit between 700 and 1,000. In Westminster alone, according to research by Transparency International, 537 Storm Shadows’ worth of property is owned by Russians accused of corruption or with links to the Kremlin, property that stretches from Belgravia to St James’s and St John’s Wood. Indeed, the most valuable home in the UK, Hanover Lodge, was sold last year for 141 Storm Shadows by Andrey Goncharenko, a former Gazprom executive with ties to the Kremlin. A great deal of that property is owned by or connected to sanctioned individuals, including former Deputy Prime Ministers Igor Shuvalov and Vladimir Potanin.

The existence of this property is not just an economic issue; its impact also reaches into the very hearts of our communities. Our buildings and neighbourhoods are weakened when they are used for profit rather than purpose. A strong community is one in which neighbours can be the ones who look after your kids when you have a job interview. It is those communities that are undermined when we let towers of vacant investment properties propagate and turn a blind eye to foreign wealth emptying out British homes. Most recently, these communities have opened their arms to hundreds of thousands of Ukrainians fleeing from Putin’s illegal invasion. I am the constituency Member for a number of those refugees, and it is thinking of them that gives the overwhelming majority of us in this House the resolve to use every tool at our disposal.

That brings us to today’s topic: the seizure of sanctioned assets. As we heard earlier, the significance of this step and the precedent it would set should not escape us as legislators. The first ever permanent seizure of frozen assets occurred only last year, when the National Crime Agency confiscated the assets of Petr Aven for suspected evasion of sanctions. To set out an intentional policy of seizing those assets would be a bold step, and one that would doubtless lead to legal challenge. However, it must be worth us considering every option available for sanctioned assets, particularly when there is a clear argument that it would be justified to use them in supporting the Ukrainian people.

Putin’s invasion of Ukraine is in complete contravention of international law and violates the sovereignty and self-determination of the Ukrainian people. Furthermore, as has been confirmed by the UN’s independent international commission of inquiry on Ukraine, it has enabled a string of other war crimes, including indiscriminate attacks, violations of personal integrity, including executions, torture and ill treatment, and sexual and gender-based violence. As was made clear during the application of the original sanctions, the sanctioned individuals are playing a direct part in this war. They range from propagandists spreading disinformation about the conflict to garner public support, domestically and across the globe, to industrialists manufacturing the chemicals used in Russian weapons, and military and security personnel directly contributing to the invasion.

When the war in Ukraine is over, questions will remain about what we do with the 28,000 Storm Shadows of sanctioned wealth belonging to those who funded, championed, and even fought in Putin’s illegal invasion. We must take this opportunity to consider what sort of country we want to be when it comes to that dirty money, and to ensure that we do not let our economy be complicit in the forces that fund evil across the world.