A promised crackdown on Russian ‘dirty money’ in London will be delayed for 18 months, triggering criticism that Boris Johnson is dragging his heels.
Keir Starmer pointed out that a register of the real foreign owners of property will not come into force until autumn 2023 at the earliest – “far too long for the Ukrainian people”.
“Why are we giving Putin’s cronies 18 months to quietly launder their money out of the UK property market and into another safe haven,” he demanded to know.
The Labour leader also criticised the government for failing to sanction Russian oligarchs with UK interests quickly – alleging that, despite the government’s rhetoric, it has fallen behind the EU.
He pointed to the example of a former Russian deputy prime minister, Igor Shuvalov, who owns two flats worth £11m just yards from parliament and has been sanctioned by the EU – but not by the UK.
Sir Keir said he was “ashamed” that shell companies behind Russian ownership of UK assets are only known because of the bravery of the jailed opposition leader Alexei Navalny.
He also demanded to know why the Russian-Israeli owner of Chelsea football club, Roman Abramovich, has not yet been sanctioned.
“We must stand up to Putin and those who prop up his regime,” he told Mr Johnson at prime minister’s questions.
“Roman Abramovich is the owner of Chelsea Football Club and various other high-value assets in the United Kingdom. He’s a person of interest to the Home Office because of his links to the Russian state and his public association with corrupt activity and practices.
“Last week, the prime minister said Abramovich is facing sanctions. He later corrected the record to say that he isn’t. Well, why on earth isn’t he?”
In response, Mr Johnson said it was not “appropriate” for him to comment on individual cases, but insisted the actions taken by the UK are already “having an effect in Moscow”.
“By exposing the ownership of properties, of companies in the way that we are, by sanctioning 275 individuals already – a further 100 last week –the impact is being felt, he told MPs.
The prime minister added: “What we will publish in addition, is a full list of all those associated with the Putin regime.”
And he said: “I think the House should be proud of what we have done already. And I can tell him that there is more to be done.”
However, many Tory MPs share Labour’s concern that action is too slow – after the Foreign Office said it is inhibited by letters from expensive lawyers challenging on behalf of their Russian-born clients.
Mr Abramovich is reported to be planning to sell his 15-bedroom mansion in west London, bought for £90m in 2009, allegedly in an attempt to escape sanctions.
