As Vladimir Putin ordered his forces to enter eastern Ukraine, the West followed through on its long-held promise to deliver sanctions against Russia.
UK Prime Minister Boris Johnson today announced targeted sanctions against five banks and three individuals, part of a package of measures in response to Russia's recognition of two breakaway regions of eastern Ukraine as independent.
While the banks and individuals are not familiar to many, they are accused of financing firms in Crimea or Russia's defence sector.
Mr Johnson says the measures form part of the "first tranche" of sanctions that could be enforced against Russia.
"We want to stop Russian companies from being able to raise funds in sterling or, indeed, in dollars," he said.
"We want them to stop raising funds on UK markets and we want to strip away the veil that conceals the ownership of property in this country."
When it comes to retaliating against oligarchs, the UK is in a unique position, with more Russian money tied up in London real estate than in many other places in the world.
The playground of Russia's elite
Many wealthy individuals and companies from Russia and around the world invest legitimately in UK financial and property markets, the BBC reports.
But a report by the Home Office says the UK continues to see a significant volume of "Russian-linked illicit finance channelled through the UK economy".
The flood of Russian millionaires and billionaires snapping up properties in wealthy areas of London has seen some suburbs dubbed Soviet-inspired names like Londongrad or Red Square.
Meanwhile, the Russian gold pouring into London is also spent on luxury cars, private school fees and, sometimes, as donations to cultural institutions.
"There has been too much dirty Russian money sloshing around London as it is. We're known as Londongrad," the UK's Shadow Attorney-General, Emily Thornberry, said today in response to the UK sanctions.
While the UK has moved to crack down on illicit Russian money — including moving in 2017 to compel those investing in the country to explain where they get their money — Ms Thornberry and others have called for tougher action to be taken.
Encircling Putin's allies
The men targeted by the UK today are all considered to have links to Mr Putin and have been the subject of previous sanctions from the United States.
British individuals and entities are now prohibited from doing business with the three billionaires.
The first on the UK's sanction list is Gennady Timchenko, a hockey enthusiast with close ties to Mr Putin.
He is considered to be "one of the most powerful people in Russia". Among his assets are jets and a 40-metre pleasure yacht, the MS Lena, named after his wife, according to The Guardian.
Mr Timchenko is considered to be a citizen of Russia, Finland and Armenia. The UK says he was targeted because he is a major shareholder in Bank Rossiya, which has been accused of expanding into Crimea after Russia's 2014 annexation and supporting Russia's consolidation of the peninsula.
Boris Rotenberg — a former judo sparring partner of Mr Putin and prominent businessman — has also been sanctioned.
"The Rotenberg brothers have known Putin since they were boys growing up in St Petersburg," according to a UK government report.
The UK says Mr Rotenberg is also a member of the St Petersburg Connection — a powerful energy lobby under the leadership of Mr Putin — and is the co-owner of SGM, the largest construction company for gas pipelines and electrical power supply lines in Russia.
Mr Rotenberg's nephew, prominent businessman and billionaire Igor Rotenberg, rounds out the list of sanctioned individuals.
The UK says he controls drilling company Gazprom Bureniye and is also a close associate of Mr Putin.
Along with targeting individuals, the UK has also set its sights on banks that have close links to the Russian President.
Hitting banks tied to the President
Bank Rossiya is owned by billionaires with direct links to Mr Putin.
It has been accused of "engaging in, providing support for, or promoting any policy or action that could contribute to destabilising Ukraine or undermining or threatening the territorial integrity, sovereignty or independence of Ukraine".
Black Sea Bank for Development and Reconstruction is a Crimean bank that was created immediately after the illegal annexation of Crimea in 2014, according to the UK. It has "capitalised on the sector's fear of Western sanctions and the lack of banks in Crimea".
Joint Stock Company Genbank is a Russian financial institution that "operates extensively in the occupied territory of Crimea", the UK government report says. It "contributes to undermining or threatening the territorial integrity, sovereignty and independence of Ukraine".
Another sanctions target is IS bank, which has operated across Crimea since Ukrainian banks were stopped from operating there.
The UK says IS bank has been "providing financial services, thereby facilitating the integration of Crimea into the Russian Federation through the financial system".
Public Joint Stock Company Promsvyazbank is a state-owned bank that plays a pivotal role "for the Russian military-industrial complex", according to the UK.
It services nearly 70 per cent of state contracts signed by the Defence Ministry, the UK says, and, as a government customer, "Promsvyazbank provides financial services, or makes available funds and economic resources, that could contribute to destabilising Ukraine".
The five banks have had their assets frozen.
But a chorus of criticism from the UK Opposition, commentators and even members of Mr Johnson's own party suggest that the measures as they currently stand are not enough of a deterrent to prevent further escalation in Ukraine.
Will these measures be enough?
Sanctions have increasingly been used by the West over the years to avoid warfare and deploying troops.
However, against Russia, they have had mixed success.
While the 2014 sanctions hurt the Russian economy, they ultimately failed to stop Mr Putin from making the biggest land-grab in Europe since World War II.
The West is hoping that, by targeting Russia's elite and those with close ties to the President, it will create pressure on Mr Putin to change his current strategy.
However, former Tory leader Sir Iain Duncan Smith questioned Mr Johnson's announcement, saying Russia needs to "feel the pain of the first part of this decision".
"Should it not be that we need to hit them, if we are going to hit them, with sanctions hard and hit them now?" he asked.
He was joined by other members of Mr Johnson's party and the opposition in calling for tougher measures.
But Mr Johnson insists that this is only the first of a barrage of measures the UK can deploy, and he is determined that Mr Putin's venture in Ukraine "must fail".
For now, it seems, the full extent of the UK's response will depend on what Mr Putin does next.
ABC/Reuters
