GDP international comparisons: Economic indicators
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Since Russia’s invasion of Ukraine, the UK has applied sanctions and changed rules around visas and corporate transparency to counter Russian influence.
Countering Russian influence in the UK (564 KB , PDF)
Diplomatic relations between the UK and Russia have been on a downward trajectory since the mid-2000s. Despite this, Russian influence in the UK has grown.
In its report on Russia, published in July 2020, the UK Parliament’s Intelligence and Security Committee called Russian influence in the UK “the new normal” (PDF) and said that the government had underestimated the response required to the Russian threat.
The government’s Integrated Review of Security, Defence, Development and Foreign Policy in 2021 said that state threats to the UK are growing and diversifying, and that states are becoming increasingly assertive in how they advance their own objectives. It called Russia one of “the most acute threat[s] to our security”. That assessment was reiterated in the subsequent refresh of the integrated review in 2023, which had, in part, been prompted by Russia’s invasion of Ukraine in February 2022.
The government said on several occasions that any Russian incursion into Ukraine would be a “strategic mistake and subject to consequences”, including an “unprecedented” package of coordinated sanctions. However, there were also widespread calls for the government to go beyond sanctions and bring forward the initiatives and legislation on countering foreign influence in the UK that had been promised in the years prior.
Despite progress over the last three years, Russia continues to pose a threat. The Russian government has been accused of orchestrating a widespread campaign of interference and disinformation that seeks to undermine the global order. In September 2024, the heads of MI6 and the CIA jointly warned that the international order is under threat in a way not seen since the end of the Cold War, accusing Russia of a “reckless campaign of sabotage across Europe”.
Prior to the invasion, the UK was an attractive place for wealthy Russians (PDF) to invest and spend their money for reasons including:
In 2022, Parliament passed the Economic Crime (Transparency and Enforcement) Act 2022, to increase the transparency of foreign entities holding UK property, help the government confiscate UK assets obtained with illegally acquired money and to increase the scope of sanctions penalties.
This was followed by the Economic Crime and Corporate Transparency Act 2023 which the government said would help tackle “dirty money” by requiring more information from companies and giving Companies House more powers to investigate companies submitting inadequate information.
Official statistics report that Russians not resident in the UK hold around £8.2 billion in UK financial assets, compared with almost £30 billion prior to the invasion. As of October 2023, £22.7 billion of assets had been frozen in connection with the Russian sanctions regime.
Trade with Russia has also fallen almost 90% in value, and trading in Russian companies listed on the London Stock Exchange is suspended.
Hostile activity by those acting on behalf of foreign states or entities has been a growing security concern in recent years.
In response to the poisoning of Sergei and Yulia Skripal in Salisbury in March 2018, attributed to the Russian state, the government expelled Russian diplomats that had been identified as undeclared intelligence officers. The Counter-Terrorism and Border Security Act 2019, subsequently introduced powers to stop, question, search and detain people at ports and borders to determine whether they appear to be, or have been, engaged in hostile state activity.
Both the Intelligence and Security Committee and the 2021 Integrated Review proposed legislation be introduced to give law enforcement and the security and intelligence agencies the necessary powers to deal with state threats. IR21 argued that action which falls short of conflict can nevertheless threaten and interfere with the UK’s security, economy, democracy and social cohesion.
The National Security Act 2023 (NSA) subsequently sought to implement the recommendations of a Law Commission review of the Official Secrets Acts, taking account of evolving threats. It introduced new offences in relation to espionage, entering prohibited places, sabotage, and foreign interference. It also introduced a regime of prevention and investigation measures aimed at those suspected of involvement in state threat activity who are not able to be prosecuted.
The Foreign Influence Registration Scheme, a public register created by the NSA, is yet to be commenced. It would require those working for foreign governments to declare their lobbying activities.
The availability of investor visas was identified as a key driver of London’s appeal to wealthy Russians (PDF). In February 2022, the government closed the Tier 1 (Investor) visa to new applicants. The visa had offered permission to stay in the UK and a route to permanent residence and citizenship for those with the means to invest at least £2 million in the UK.
There had been longstanding concerns that the visa was vulnerable to misuse by people wanting to transfer illicitly obtained wealth to the UK. An internal government review of investor visas granted before April 2015 identified potential evidence of this in a “small minority” of cases.
Following Russia’s invasion of Ukraine, the government introduced powers to impose visa penalties on citizens from countries whose governments are considered to pose a risk to international peace and security, armed conflict, or international humanitarian law. It said at the time it was minded to use them in respect of Russia. It hasn’t done so, but there have been some reports that visa applicants from Russia and Belarus experience slow visa processing times because of additional security checks and other reasons.
The government has also used sanctions powers to impose travel bans on certain individuals associated with the Russian regime. It has also introduced restrictions on visas for Russian diplomats, including limiting the length of time they can spend in the UK.
The Intelligence and Security Committee’s 2020 report on Russia noted that attempts at broader political influence and disinformation have been widely reported. It said that Russians oligarchs had used their business interests, donations to charities and political parties to influence UK affairs.
Donations to political parties and elected representatives are regulated, mainly through the Political Parties, Elections and Referendums Act 2000, as amended (PPERA). The system of regulation is designed to prevent foreign money entering the political system and elections.
However, the current checks on foreign donations have been criticised. The Committee on Standards in Public Life (CSPL) recommends PPERA should be updated to require parties and non-party campaigners to have appropriate procedures in place to determine the true source of donations. The CSPL’s most recent report on party finance, from July 2021, also included recommendations to limit foreign money entering political finance and campaigns.
The Labour Party manifesto for the 2024 election committed it to strengthening rules on donations and loans.
In March 2022, the media regulator Ofcom revoked the broadcast licence of the TV network Russia Today (RT). Ofcom had opened investigations into the impartiality of RT programmes following Russia’s invasion of Ukraine.
Since February 2022, the UK has also taken steps to sanction Russian state media, social media platforms, propagandists, news anchors, and regime spokespeople accused of spreading disinformation about the conflict.
The government has also passed the Online Safety Act 2023. One of the aims of that legislation is to protect users from illegal content and activity. It makes foreign interference (as set out in section 13 of the National Security Act 2023), a priority offence. This means that ‘in-scope services’ such as social media platforms and search engines, must take proactive, preventive action to identify and minimise people’s exposure to state-sponsored or state-linked disinformation aimed at interfering with the UK.
Russian military activity in, or near, UK territorial waters and airspace is not new. However, it remains a concern, particularly with respect to Russia’s alleged intelligence gathering activities and threats to the UK’s critical undersea infrastructure.
In January 2025, the Defence Secretary John Healey said “we are strengthening our response to ensure that Russian ships and aircraft cannot operate in secrecy near the UK or near NATO territory”.
The UK Chief of the Defence Staff Admiral Sir Tony Radakin has said that the chance of a significant, direct Russian attack on the UK mainland is, however, “remote”.
Countering Russian influence in the UK (564 KB , PDF)
GDP measures the size of the economy. Find the latest GDP growth data for the UK and comparisons with other G7 economies.
Russia's invasion of Ukraine will mark its third anniversary on 24 February 2025.
A Westminster Hall debate has been scheduled for 9.30am on 25 March on accountability of the construction industry. The subject for the debate has been chosen by the Backbench Business Committee, and the debate will be opened by Will Forster MP.