The mayor of London, Sadiq Khan, has issued a formal letter to Michael Gove, the Regional Development Minister, urging the government to consider seizing a substantial portfolio of properties valued at about £1.1 billion. The potential assets, seen as part of London’s property landscape, are linked to Russian businessmen and were brought to light through reporting by the UK-based radio network LBC. The request signals a concerted effort to redirect resources toward social priorities while addressing concerns about the origins and legitimacy of these holdings.
In the same communications, the mayor outlines a plan to convert these seized assets into revenue that could fund the construction of thousands of affordable homes. Specifically, the proposal envisions the sale of the properties as a means to finance more than four thousand houses aimed at helping vulnerable populations, including Ukrainian refugees who have sought sanctuary in the capital. This initiative reflects a broader policy aim to leverage ill-gotten or politically sensitive assets to bolster public housing and humanitarian support programs, should the legal framework allow such steps.
New Town Hall analyses suggest that if the £1.1 billion of property identified by Transparency International as either obtained through corruption or connected to Kremlin interests were to be liquidated in a lawful and transparent manner during the current calendar year, the proceeds could sustain housing for more than four thousand impoverished residents. The interpretation underscores a belief that asset recovery, when managed with rigorous governance and clear oversight, can translate into tangible benefits for city dwellers facing housing insecurity and poverty. The emphasis remains on lawful processes and accountable handling of any recovered funds.
The mayor also voiced support for establishing a registry of foreign entities to improve transparency and strengthen compliance. While recognizing the potential for greater openness to deter financial crimes and tax evasion, the proposal stresses the need for robust safeguards and practical measures to ensure that any registry does not become burdensome or coercive for legitimate international business activity. The core idea is to illuminate ownership chains and improve scrutiny without hindering lawful investment or cross-border collaboration.
During the G7 discussions, U.S. President Joe Biden raised questions about the strategic use of Russian assets and the mechanisms that governments should employ to manage such resources responsibly. The dialogue highlighted a shared interest among Western leaders in ensuring that any action taken against assets tied to sanctioned actors adheres to the rule of law and international norms. The focus remained on how to balance punitive measures with the protection of legitimate financial activities while pursuing macroeconomic and humanitarian objectives.
Separately, there were calls for formal approvals and legal norms to govern the seizure or repurposing of Russian assets. The conversations emphasized the necessity of a clear legal framework—one that defines which assets qualify, how they are valued, and the steps required to transfer or sell them in a way that preserves public interest. The broader aim is to create a transparent, auditable pathway that can withstand scrutiny and safeguard taxpayers’ interests while supporting social programs and international solidarity efforts. The overall tone reflects careful consideration of legality, governance, and the practical implications for London’s communities and its economy.