Aletho News

Britain will maintain sanctions to ensure war-affected Russians cannot receive aid

By Ahmed Adel | June 20, 2023

The UK has passed legislation that will allow sanctions against Russia to remain in effect until Moscow pays compensation to Ukraine, the British Foreign Office said on June 19. The British Foreign Office also stated that the European country’s law allows sanctioned Russians to transfer their frozen assets for Ukrainian reconstruction.

“The Government is taking powers to maintain Russian sanctions until compensation is paid to Ukraine and is introducing a route for frozen Russian assets to be donated for Ukrainian reconstruction, under new legislation announced by Foreign Secretary James Cleverly today,” the British Foreign Office announced.

In addition, the ministry pointed out that the UK will create a fund that will allow sanctioned Russians to transfer their frozen assets to the reconstruction of Ukraine.

“This will be a voluntary process whereby sanctioned individuals may apply for funds to be released for the express purpose of supporting Ukraine’s recovery and reconstruction. There will be no coercion of individuals to encourage them to transfer funds, nor any offer of sanctions relief in return for making a donation,” the Office audaciously added, although it does highlight the British entitlement of wanting Russians to release their funds for a purpose but without guarantees.

On June 18, the Daily Mail reported that the UK government and Russian businessman Roman Abramovich, who owned the English Premier League football club Chelsea until 2022 when he was forced to sell it due to the British sanctions campaign against Russia, could not agree on the distribution of funds received from the sale of the club as the billionaire wanted the funds to be sent not only to Ukrainians but also to Russians affected by the conflict. The UK government and the European Commission opposed Abramovich’s desire to send funds to Russians.

At the time of the forced sale, Abramovich’s press office said he “wanted the proceeds to be transferred to a charitable foundation for the needs of the victims on both sides of the conflict between Russia and Ukraine.”

This latest provocation by Britain comes as the country’s Ministry of Defence released a video on June 14 revealing the advanced long-range drones that will be sent to Ukraine in the coming weeks. The video shows several types of drones, including one firing a torpedo over water and another being catapulted from the deck of a vessel.

“We announced a £92m air defence package, to be provided through the second procurement round,” the video’s caption said.

Despite the publication of the video, the British authorities did not provide details about the equipment. However, it is speculated that autonomous aircraft with a range of more than 200 kilometres will be sent to Kiev. It is worth noting that the UK recently supplied Storm Shadow cruise missiles to Ukraine with a range of over 250 kilometres.

Western countries imposed comprehensive sanctions on Russia after it started a special military operation in Ukraine in February 2022, and provided constant support packages to Kiev in the conflict. However, it has been their economies, especially the British, that have suffered from these sanctions.

British Prime Minister Rishi Sunak was warned that the UK could be in recession next year as high inflation pushes interest rates to more than 5% before the next general election. With rising borrowing costs on mortgages and loans for millions of households, economists believe the Bank of England could be forced to drive Britain’s economy into a recession to deal with inflation.

Former IMF deputy director Mohamed El-Erian said the Bank of England would be forced to raise interest rates for longer, leading to a recession or near zero growth.

“The risk we now have, you put all that together – sticky inflation, the Bank having to go higher, borrowing costs going up – all that translates into a higher threat of stagflation. I use stag as shorthand for insufficient economic growth. It can be recession, it can be zero growth. This is not about abstract numbers; it’s about something that hits the poor particularly hard,” El-Erian said.

Yet, despite these significant economic problems, the UK establishment continues its centuries-long policy of opposing and challenging Russia, this time in the context of Ukraine. Already having imposed self-detrimental sanctions and funded Ukraine with billions of pounds, the UK will now roll out a major expansion to its cyber defence programme in Ukraine. It will be boosted by an injection of up to £25 million and a two-year expansion.

As demonstrated, London is concocting all sorts of methods, with endless money streams, to challenge Russia despite British citizens facing a once-in-a-lifetime economic crisis. Not only does this prolong the war and suffering, but it also shows Britain’s obsession with challenging Russia, so much so that it cannot even tolerate Russians affected by the war being supported with the frozen funds of Russian billionaires.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

June 20, 2023 - Posted by aletho | Economics, Ethnic Cleansing, Racism, Zionism | UK