Bill Browder has urged MPs to seize Russian assets to assist Ukraine in its war against Putin’s regime, but many in the Conservative Party are loath to attack personal property rights. Here’s the full story.
Much Heat, Little Light
As Russia’s war in Ukraine drags on, discussions on how to punish Russia for launching the largest land war in Europe since WWII have raised a lot of heat but little light.
Asset Seizure
One of the most significant talking points for governments, and the UK government in particular, is the seizure of frozen Russian assets to support Ukraine in its military efforts and to aid in its reconstruction.
Strategic Considerations
The proposal to seize Russian assets has sparked contentious debates about the legal, moral, and strategic considerations behind such a move.
US Repo Act
Prominent figures advocating for the move include Kremlin critic Bill Browder, who urged MPs to introduce legislation similar to the US’s Repo Act, which enabled the confiscating of frozen Russian assets to bolster Ukrainian defence.
Magnitsky Murder
Browder became an outspoken critic of the Kremlin following the death of his lawyer, Sergei Magnitsky, who died in Russian custody. Upon Magnitsky’s death, there was international outrage, as many in the global community believed he was murdered on Putin’s orders.
Putin’s Rights?
In his testimony to the UK’s Treasury committee, Browder stated, “Should Vladimir Putin’s legal rights to his money be more important than the taxpayer of this country’s rights? I don’t think so, and I don’t think any of you would find any objection in any of your constituencies if you went and had that conversation.”
“The Right to Confiscate Money”
He continued, “What I think the UK should do is what the US has done: they have now resolved any legal ambiguity, and the United States government has the right to confiscate the money. What I would suggest is done here is some version of the Repo Act.”
$300 Billion
Browder added, “Quite simply, if the west – the UK, US, EU and other allies – were to confiscate $300bn, that would change the whole nature of the war.”
Insurance Policy
Browder claimed that his plan to seize Russian assets would not only aid Ukraine in their fight against the ongoing Russian invasion but also act as a potential insurance policy should Donald Trump, who is staunchly against the US continuing to fund Ukraine, be re-elected as president.
“Solve That Problem”
He told MPs, “This money, this $300bn, would solve that problem – it would basically be an insurance policy against that problem.”
“Pay Reparations”
Browder has vocal supporters in the UK government, including David Cameron, who, in a speech at Davos in January, asked, “At the end of the day, Russia is going to have to pay reparations for its illegal invasion, so why not spend some of the money now, rather than wait till the war is over and have all the legal wrangling about reparations?”
Deeply Contentious
Despite the supportive rhetoric from many EU and UK politicians, the likelihood and even feasibility of seizing Russian assets remain deeply contentious.
“Londongrad”
In the UK, the City of London, which has earned the nickname “Londongrad” due to its reputation as a safe place for Russian oligarchs to wash their dirty money, is rumoured to be pushing back against any such suggestion that the £18 billion worth of individual assets have been frozen, which does not include the £26 billion worth of Russian central bank assets in the UK, should be confiscated.
“Huge Pressure”
In an interview with POLITICO, Labour MP Margaret Hodge explained that “the financial services sector is putting huge pressure on the government not to act” to protect the City’s reputation as a safe place for oligarchs to keep their ill-gotten gains.
Conservative Rifts
However, there are signs that the issue is causing rifts in the Conservative Party between those who believe that asset seizure is justified and those who see it as a dangerous attack on the Conservatives’ much-loved protection of personal assets.
“Kleptocratic Regime”
Harriet Baldwin, chair of the Commons Treasury Committee, recently told POLITICO, apparently without irony, that the UK cannot “go out and seize people’s assets randomly,” because to do so would mean the UK had become a “kleptocratic regime.”
“Progress Is Slow”
However, Ian Duncan Smith, the former Conservative leader, said of Russian asset seizures: “The progress is slow and the UK is now lagging behind the US and Canada, and EU states such as Belgium and Estonia, all of whom are taking steps to confiscate or redirect gathered funds to Ukraine.”
“Dragging Its Feet”
He continued, “The confiscation of assets raises significant legal, political and economic questions, which must be considered, but are not insurmountable with advice from experts. The government has been dragging its feet on this and needs to catch up with the others.”
Ukrainian Deaths
The whole time that the discussion over the morality or legality of seizing the assets of Russian oligarchs who are broadly supportive of Putin’s regime is taking place, Ukrainians continue to die in a war to defend their country.
Hands Wrung, Time Wasted
Whilst Conservative politicians may be nervous about what the seizure of private property might mean for their much-vaunted personal freedoms, going so far as to block a Labour bill that would have forced the government to outline a plan to do so in February, lives are lost while time is wasted in hand-wringing.
Clearer Focus
Whether the upcoming election will bring this issue into clearer focus or whether the rights of rich individuals to keep their assets will be prized over Ukrainians’ lives remains to be seen.
The post Kremlin Critic Pushes for Seizure of Russian Assets to Strengthen Ukraine’s War Effort first appeared on Swift Feed.
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