The Guardian view on economic war with Russia: target oligarchs not ordinary people
On Thursday evening, Boris Johnson tweeted new sanctions on “Kremlin associates … to inflict maximum economic pain on Putin and his war machine”. The prime minister claimed to MPs he is leading the west in punishing the Russian president for his invasion of Ukraine. But Mr Johnson’s actions show he is lagging some way behind.
The European Union and the United States have targeted many more of Vladimir Putin’s cronies – and are moving swiftly to take control of their assets. Earlier this week, France seized a superyacht linked to Igor Sechin, the boss of Russia’s largest oil company and an oligarch who Britain has yet to sanction. Left untouched in Britain are the mansions and art collections amassed by wealthy Russians. No wonder many think these assets risk being spirited away.
Russian oligarchy has its roots in the western-inspired reforms of liberalisation and privatisation that followed the collapse of the Soviet Union. FromAugust 1990, Russia was subjected to a form of economic shock therapy which saw the wealth created by millions and owned by the state either frittered away or captured by a small group of individuals. That created the yawning divides in Russia today. Post-pandemic, just 500 Russians control more wealth than the poorest 115 million Russians.
Britain’s political and business model did very well from Moscow-linked money. The Conservative party has been given about £2m since 2012 by a former Russian minister’s wife. Oligarchs liked the City so much it was nicknamed Londongrad. The Square Mile offers anonymity. Its rules can be dodged and are policed by poorly funded watchdogs. An army of lawyers, accountants and public relations consultants can be hired. Tax and libel laws favour the rich. Given the
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