British property worth £1.5bn has been bought by Russians accused of corruption or with Kremlin links, according to new figures fuelling criticism of so-called “Londongrad”.
Anti-corruption campaigners unveiled research showing 28 per cent of that property is on the doorstep of the government and parliament in Westminster, with Kensington and Chelsea another hotspot.
There are 2,189 companies registered in the UK and its offshore tax havens involved in Russian money-laundering and corruption cases – involving funds worth £82bn – Transparency International said.
The figures come hard on the heels of the government shelving long-promised ‘McMafia’ legislation, to target the unexplained wealth of kleptocrats – before criticism forced a U-turn.
US experts close to the White House have warned the power of kleptocrats with investments in London – and their “close ties” to the Tory party – will thwart the UK’s pledges to act tough against Russia.
Transparency International said its research underlined how the UK is a global hub for international money-laundering, after years of inaction, often through its offshore havens.
“They are used by those seeking to hide their ownership of assets because UK law currently allows companies incorporated there to own the property without the need to disclose the names of the individuals who own the companies,” it said.
Liz Truss, the foreign secretary, has rushed through legislation which she says will target Russian oligarchs in London, if Vladimir Putin’s invasion of Ukraine goes ahead.
But she has refused to say what sanctions will be imposed – and campaigners say the tactic is no substitute for effective legislation against corruption.
Ministers have stalled on promised action to reveal the true owners of property and to give proper teeth to Companies House to crack down on rogue companies.
That failure has provoked cross-Channel tensions after Boris Johnson told Germany and other countries to cut their reliance on Russian gas.
Radek Sikorksi, a Polish Member of the European Parliament, tweeted: “It would be even better if Germany got tough on Russia and energy dependence and Britain on stolen Russian money. Not the other way around.”
The UK is poised to axe “golden visas” for wealthy foreign investors, because of evidence they are exploited by Russian oligarchs – but only as ministers face a Lords defeat over them.
Launched in 2008, the tier one visas grant fast-track residency to foreigners with at least £2m in investment funds and a UK bank account, but background checks have been criticised as lax.
As tensions over Ukraine continue, the US has accused Russia of sending up to 7,000 further troops, while Ms Truss warned Moscow could drag out the crisis for months to undermine Western unity.
James Heappey, the armed forces minister, said he remains “worried” about the prospect of Russian troops moving into Ukraine, with the prospect that “tens of thousands of people could die”.
