Britain today slapped sanctions on five Russian banks and three oligarchs with ties to Vladimir Putin after the invasion of two breakaway regions of Ukraine.
Boris Johnson announced the move against Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank after Russia sent "peacekeeping" troops into so-called “People’s Republics” of Donetsk and Luhansk.
The three oligarchs - who Mr Johnson described as "very close to the Putin regime” and "cronies" of the Russian President - are Gennady Timchenko, Boris Rotenberg and his brother Igor Rotenberg.
Boris Johnson told Parliament: "Any assets they hold in the UK will be frozen, the individuals concerned will be banned from travelling here, and we will prohibit all UK individuals and entities from having any dealings with them."
But what do the sanctions mean for the UK? Here is all you need to know.
Are British troops going to be sent to Ukraine?
No. One of Vladimir Putin’s excuses for invading is because he fears Ukraine will one day be accepted into NATO. But it is not currently part of the 30-nation military alliance and therefore is not protected by its Article V clause on collective defence - that an attack on one is an attack on all. Dozens of UK forces had been deployed in Ukraine since 2015 on Operation Orbital - a training mission to help local troops. They withdrew earlier this month(FEB) as tensions mounted. However, the UK has bolstered troop numbers in Estonia, which is a NATO member and which also feels threatened by Russian aggression.
Will petrol and gas prices rise?
Almost certainly. While the UK buys just 3% of its gas from Russia, Britain is exposed to price volatility on the international market. If Moscow restricts supply, countries which buy Russia’s gas will have to look elsewhere - pushing up prices for everyone. Oil prices usually climb when there is any global tension. The cost of a barrel of Brent crude - the world benchmark - hit nearly $100 yesterday(TUES), which could soon hike pump prices for British motorists. Experts warned unleaded could reach £1.50 a litre. Boris Johnson told MPs: “One of the risks of Putin’s venture is there could be a spike in gas prices, in oil prices.”
What are these sanctions?
The PM announced sanctions against five Russian banks and three individuals described as Putin allies. The banks are: Promsvyazbank, Bank Rossiya, IS Bank, Black Sea Bank for Development and Reconstruction and General Bank. Three billionaire oligarchs were also hit: Gennady Timchenko, Boris Rotenberg, and Igor Rotenberg. The PM told the Commons: “Any assets they hold in the UK will be frozen, the individuals concerned will be banned from travelling here, and we will prohibit all UK individuals and entities from having any dealings with them.”
Is that it?
A Western official admitted it was “a relatively small but very high value number of Russian oligarchs”. They stressed more sanctions could follow, adding there was a “clear declaration of intent to go further as Russia makes any further incursion into Ukraine”. Russian MPs in the Duma who voted to recognise the breakaway regions of Luhansk and Donetsk also face being sanctioned. The PM insisted of the sanctions announced: “This is the first tranche, the first barrage, of what we are prepared to do. We will hold further sanctions at readiness, to be deployed alongside the United States and the European Union if the situation escalates still further.”
What about Roman Abramovich?
Not for the first time, Boris Johnson got his facts wrong and sowed confusion when addressing MPs by incorrectly claiming that Chelsea FC owner Roman Abramovich was facing sanctions. The PM’s spokesman later admitted Mr Johnson "misspoke". An official indicated No10 is expected to correct the record. It is thought the PM became confused over issues the oligarch had around his entrepreneurial visa in 2018. Last October(2021), the businessman's spokesman confirmed he travelled to London as an Israeli citizen - entering the United Kingdom without the need for a visa.
