Putin-linked oligarchs could see UK properties seized by government PERMANENTLY and used to house Ukrainian refugees under tough new sanctions being drawn up by Michael Gove
- Michael Gove is drawing up extra measures to target sanctioned oligarchs
- Properties could be seized for good without government paying compensation
- Cabinet ‘enthusiastic’ about the idea but lawyers have warned of challenges
Putin-linked oligarchs could have their UK properties seized by the government, under radical plans being drawn up by Michael Gove.
The Cabinet minister is proposing to ramp up the sanctions regime by requisitioning lavish residences without paying any compensation.
They could potentially be used to house Ukrainian refugees, with Boris Johnson pledging that Britain will take hundreds of thousands fleeing the Russian invasion.
There is understood to have been ‘enthusiastic’ support at Cabinet for the idea – including from the PM – and it could apply to nine oligarchs sanctioned by the UK, including Kirill Shamalov, Vladimir Putin’s former son-in-law.
Currently the state can freeze assets of people subject to sanctions, but cannot take possession of them without compensation.
Michael Gove (right) is proposing to ramp up the sanctions regime by requisitioning lavish residences without paying any compensation. It could apply to nine oligarchs sanctioned by the UK, including Kirill Shamalov (left), Vladimir Putin’s former son-in-law
A woman carries her baby at border crossing in Medyka, Poland, as refugees flee Russian invasion of Ukraine
However, the plan – reported by the Financial Times – is likely to require legislation, and government lawyers have raised concerns it would face legal challenges for undermining core property rights.
No final decision has been reached on whether to proceed, with one official telling MailOnline that it will need to happen in ‘days or weeks’ to be relevant.
The possibility of housing Ukrainian refugees in any properties has also been discussed, as they would be ‘the government’s to use’.
But sources said it might end up being more practical to sell and use the proceeds for other housing.
Liz Truss, UK foreign secretary, said on Monday that the government is working through a ‘hit list’ of Putin-linked oligarchs for sanctions.
However, there has been criticism at how long the process is taking, with suggestions that some are already getting rid of assets.
Mr Johnson told the House of Commons yesterday: ‘The vice is tightening on the Putin regime and it will continue to tighten.’
In a round of interview this morning, security minister Damian Hinds said more individuals will be sanctioned by the UK and appeared to suggest the UK could seize assets of Russian oligarchs.
The minister was told on LBC that German authorities have seized Alisher Usmanov’s yacht, and he was asked whether similar action on elite Russians should be taken in Britain.
Mr Hinds said: ‘Yeah, and, look, we are going to go further.
‘We’ve acted very quickly on the initial round of sanctions – that includes individuals as well as organisations, banks and so on – but we’ve always been clear it is a ratchet approach and there can be more to come.
‘Specifically on assets, we’ve got legislation going through Parliament at the moment – we’re debating it on Monday – to include bolstering unexplained wealth orders, which are a potentially potent tool that can open investigations to lead to the proceeds of crime being seized.
‘We need to gum up that system, we need to stop it, to stop the money laundering, but also, as you rightly say, where it is possible – and obviously we operate within a legal framework – we are absolutely motivated to seize the proceeds of crime.’
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