Edward Lucas

The United Kingdom stands out against a gloomy background. My country is increasing its military presence in Estonia, sending weapons to Ukraine and strengthening the weak spirit of Europeans.

Defense Minister Ben Wallace has criticized Vladimir Putin’s “distorted and selective” justifications for revanchism. Foreign Minister Liz Truss promises to impose new sanctions on Russian energy companies and oligarchs. The message from the British is: “We proudly serve at the heart of the North Atlantic Alliance and the international security order.”

Underneath the pomp lies another, gloomy story in which the United Kingdom is distinguished not by steady opposition to the Russian regime, but by aid and encouragement. The Kremlin has been using London for years to launder its reputation and ill-gotten wealth. A whole army of bankers, lawyers, accountants and intermediaries are gaining wealth thanks to these deals, albeit modest. The path to respectability lies through generous charitable contributions to sports, education and culture. The flow of money occurs through an impenetrable network of offshore and offshore companies, trusts and partnerships that provide “iron” anonymity and uncontrollability. Shrewd journalists face unbearable litigation (I know from personal experience).

The scheme protects kleptocrats and erodes our system. In the summer of 2018, I was the first witness in a case brought against Russia by the Parliamentary Committee on Intelligence and Security. Using the legal protection afforded to witnesses in parliamentary hearings and the committee’s confidentiality, I presented a detailed dossier on the threat to Russian money and its impact on our political system. The committee’s further investigation was extensive and thorough. However, Boris Johnson, intervening personally, prevented the publication of the report on the eve of the 2019 elections, and later tried to take control of the committee, appointing his protege as its head. An unclassified version of the report on Russia was eventually published. In it you can find criticism of the “London Laundromat” (money laundering transactions – Ed.) And numerous recommendations, in particular on the mandatory registration of foreign lobbyists. However, there are no changes on this front at all.

DESPITE ALL THE GOVERNMENT’S PATHETIC SPEECHES, RUSSIA IS SIMPLY EXPLOITING THE PECULIARITIES OF THE BRITISH BUSINESS MODEL: SERVING WEALTHY FOREIGNERS. AFTER THE COLLAPSE OF THE EMPIRE, WE RELY ON A UNIQUE BRITISH COMBINATION OF GREED AND SNOBBERY

This damages Britain’s international reputation. Thanks to a consensus between the two parties in Congress, Americans, albeit belatedly, have tackled their own gaps in the fight against illegal financial deals. Responding to the annoying clues of Americans, our government has promised a new round of reforms. But in less than two months, he abandoned a key part of those reforms: the proposed economic crime law. It may seem that London is not just delaying, but openly sabotaging efforts.

One of the reasons for inaction may be the role of wealthy, unscrupulous types, who usually have ties to Moscow, in the financial support of the Conservative Party. I regularly receive complaints from Whitehall that the Prime Minister personally obstructs discussions on this issue.

Another problem is that the problem is very deep. Despite all the government’s pathetic speeches, Russia is simply exploiting the peculiarities of the British business model: serving wealthy foreigners. After the fall of the empire, we rely on a unique British combination of greed and snobbery. Open gaps for the super-rich lead to impunity for money laundering and fraud. Criminals with white collars enjoy almost complete freedom of action. According to the National Anti-Crime Agency (NCA), money laundering costs the UK 100 billion pounds, and other types of fraud cause another 190 billion pounds. The strength of the institutions that seek to give this advice is fragmented and inefficient in the face of a lack of staff, resources, good leadership and information.

Throwing promises of sanctions, we will not change anything. The Kremlin regime is able to continue to preach hostile anti-Western sentiment in its own country, while at the same time enjoying all the benefits of the outside world thanks to London. Our hypocrisy discredits us in the eyes of ordinary Russians, who despise our stories of freedom, legitimacy, and solidarity with allies, believing that we are just smoke. Eastern European friends thank us for the tanks, but they are worried about our banks, and they doubt whether we are trustworthy. Praiseworthy events of the Russian businessman in exile Roman Borisovich. He runs kleptocracy tours, bus tours of central London where people like me can tell what they know. show the palaces and penthouses of wealthy Russians and shed light on their amazing political connections. However, we are limited in time (and we could talk all day, or even a week), and we are invariably threatened with slander. We will invite deputies to the next round. It would be nice if Liz Truss came too. 

(c) Tyzhden