Boris Johnson sanctions Russian oligarchs over Ukraine invasion - but why has it taken so long?

A former judo pal of Vladimir Putin is among three billionaire Russian oligarchs hit with economic sanctions and banned from Britain today over the invasion of Ukraine. 

Boris Rotenberg, co-owner of SMP Bank, and his nephew Igor Rotenberg, have had their assets frozen following Putin's decision to send troops across the border last night, along with Gennady Timchenko, a billionaire who controls the Volga Group.

Five Russian banks will also be barred from trading in the UK as the West seeks to hit back economically, Boris Johnson told MPs.

They are being targeted party because of their roles in financing Russia's defence sector and firms in occupied Crimea. 

MPs asked Mr Johnson to be tougher on Russian money, even demanding that Russian oligarchs be ejected from Britain and Russian money be dug out of the City of London.

Hundreds of billions of dollars have flowed into London and Britain's overseas territories from Russia since the fall of the Soviet Union in 1991, and London has become the Western city of choice for the super-wealthy of Russia and other former Soviet republics.

The new action was criticised after it emerged that the trio targeted have been subject to sanctions in the United States for years, while freely able to make money in the UK. 

Bill Browder, the financier and arch Putin critic, tweeted: 'Pretty tepid if you ask me. The oligarchs have been on the US sanctions list since 2018.

'Where is VTB and Sberbank? Where are the other 50 oligarchs? The ones whose names we can't mention out of fear of libel.' 

Boris Rotenberg, co-owner of SMP Bank and president of the Dynamo Moscow football team, with Mr Putin in 2017

Mr Rotenberg, a gas and electricity billionaire, with his glamorous wife Karina

President Putin with Arkady Rotenberg. Both Rotenberg brothers have competed in judo with the Russian president in the past

Mr Johnson had earlier told the Commons: 'Today, the UK is sanctioning the following five Russian banks: Rossiya, IS Bank, General Bank, promsvyazbank and the Black Sea Bank. And we are sanctioning three very high net worth individuals: Gennady Timchenko, Boris Rotenberg, and Igor Rotenberg'

Bill Browder, the financier and arch Putin critic, tweeted that the sanctions were 'pretty tepid'

Boris Rotenberg - net worth: $1.2billion   

Boris Rotenberg is a father of five with interests in gas, electricity, construction and chemicals. 

He also has an attractive younger wife, Karina, who likes to splash their exploits all across Instagram 

Key to his rise to massive wealth is that he is a former judo training partner of the diminutive Russian president, who handed him rich control over gas and electricity concession in post-Communist Russia.

With his brother Arkady, Boris Rotenberg is the co-owner of Stroygazmontazh (SGM) group, Russia's largest construction company for gas pipelines and electrical power supply lines.

In 2017, Forbes estimated his fortune at $2.5 billion, but he and his brother are subject to personal sanctions by the United States' government relating to events during the Ukrainian crisis in 2013 and 2014.

Their relationship with Vladimir Putin dates back to 1963 - when they joined a sambo club (a Soviet martial art), and in 1978 Arkady became a judo trainer.

Upon Putin's return to Russia in 1990, the pair trained together several times a week, and Rotenberg secured funding to found Yavara-Neva, a professional judo club.

Boris is a former judo sparring partner of the diminutive Russian president, who handed him rich control over gas and electricity concession in post-Communist Russia.

His wife Karina is a keen user of Instagram, opening a window into their opulent life

However, the Rotenberg brothers faced international backlash following the annexation of Crimea in 2014, which saw Barack Obama sigh an executive order imposing sanctions on their businesses, as well as on other Putin allies.

Visa and Mastercard stopped servicing the Rotenberg's bank - SMP Bank - and in 2014 Italy seized 30 million euros of real estate. The US added Arkady and Igor Rotenberg to their blacklist of Russian oligarchs, freezing assets worth $65 million in the same year.

In 2016, the General Court of the European Union confirmed the sanctions. A number of the Rotenberg's business ventures in recent years have been in response to the sanctions, with a bill being proposed - known as the Rotenberg law - that would allow sanctioned Russians to be compensated by the state. The bill was declined.

Igor Rotenberg - net worth: $1.1billion

The 48-year-old son of Boris's brother Arkady, he received a host of assets belonging to his father in 2015 after the elder Rotenberg was placed under US sanctions. 

The married father of three owns drilling company Gazprom Bureniye. Announcing the sanctions today, the Foreign Office said: 'Igor Rotenberg is a prominent Russian businessmen with close familial ties to President Putin. 

Igor became a billionaire after being handed a raft of investments by his father Arkady - who is currently fighting his ex-wife over ownership of a £27 million mansion in Surrey.

'Rotenberg is the Chairman of the Board of Directors of National Telematic Systems (NTS). NTS is conducting business in the transport sector, which is of strategic significance to the Government of Russia, and therefore through his role as chairman of the board of directors to NTS, Igor Rotenberg is benefiting from or supporting the Government of Russia.'

After receiving assets from his father he became subject to US sanctions in his own right in 2018. The US Treasury said at the time he was targeted for 'operating in the energy sector of the Russian Federation economy' run by a government that 'operates for the disproportionate benefit of oligarchs and government elites'.

Gennady Timchenko - net worth: $18.1billion

The 69-year-old is the billionaire founder of the Volga Group investment firm and a major ice hockey fan.

The sixth richest person in Russia the Armenian-born financier is president of SKA Saint Petersburg ice hockey team. 

He is also believed to be another former judo partner of Putin. 

He holds Russian, Finnish and Armenian citizenship, and lives in Moscow while the rest of his family - he has three children - live in Switzerland. 

His youngest daughter Ksenia is married to Gleb Frank, the son of Putin's former transport minister Sergei Frank.

Gennady Timchenko (left) is the sixth richest person in Russia and president of SKA Saint Petersburg ice hockey team

The Foreign Office citation says: 'Timchenko is a major shareholder in Bank Rossiya. Bank Rossiya is a key stakeholder in the National Media Group which supports Russian policy which is destabilising Ukraine.

'Following the annexation of Crimea, Bank Rossiya has expanded its bank branches and provision of insurance and investment throughout Crimea and Sevastopol; and offers support to military activities and the formation of major transport links and cards that allow the public to travel easily around the peninsula.'

'Bank Rossiya has supported the consolidation of Crimea into the Russian Federation by integrating the financial system following the annexation of Crimea. Timchenko therefore is or has been involved in engaging in, providing support for, or promoting any policy or action which destabilises Ukraine or undermines or threatens the territorial integrity, sovereignty or independence of Ukraine.'

As the three have been on a US sanctions list since 2018, it is unlikely many UK businesses have dealings with them to avoid facing problems with any US interests. 

The five banks named by Mr Johnson only have a small footprint in the UK - although the largest one, Promsvyazbank, did have ambitions to float on the London Stock Exchange a decade ago. 

According to the UK Government, trade between the UK and Russia was £11.2 billion in 2020.

Last year, imports from Russia were worth £11.6 billion - an increase of 43.6 per cent on the previous year - and the UK exported goods worth £4.3 billion to Russia.

Mr Johnson had earlier told the Commons: 'Today, the UK is sanctioning the following five Russian banks: Rossiya, IS Bank, General Bank, Promsvyazbank and the Black Sea Bank. 

'And we are sanctioning three very high net worth individuals: Gennady Timchenko, Boris Rotenberg, and Igor Rotenberg.

'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.

'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.'

Conservative former minister Mark Harper asked for assurances that Boris Johnson will implement 'further and stronger measures even if President Putin does no more'.

Mr Johnson replied: 'I think it's inevitable, given what is happening in Ukraine and on the borders of Ukraine, that we will be coming forward with a much bigger package of sanctions.

'What you have today is an opening barrage that we're doing in common with our friends and allies.' 

Boris Rotenberg's brother Arkady is fighting his ex-wife over ownership of a £27 million mansion in Windlesham, Surrey.

Labour leader Sir Keir Starmer today said we must also get our own house in order', adding 'we have failed to stop the flow of illicit Russian finance into Britain' and that 'Russian money has been allowed to influence our politics'.

'We have to admit that mistakes have been made,' he said, adding 'this must be a turning point, an end to oligarch impunity'.

He said Companies House must not provide 'easy cover' for shell companies, and that anti-money laundering laws must be enforced, 'we need to crack down on spies', and 'we have to make sure money isn't pouring into UK politics from abroad'.

He also asked what international efforts were going on to pursue diplomacy, saying 'even at this late hour we must pursue diplomatic routes to prevent further conflict'.

Sir Keir offered the support of the opposition to 'do the right thing' and said President Putin 'believes the benefits of aggression outweigh the consequences, so we must take a stand'.