Putin-linked oligarchs could have their UK properties seized by the government, under radical plans being drawn up by Michael Gove.
The Cabinet minister is proposing to ramp up the sanctions regime by requisitioning lavish residences without paying any compensation.
They could potentially be used to House Ukrainian Refugees, with Boris Johnson pledging that Britain will take hundreds of thousands fleeing the Russian invasion.
There is understood to have been ‘enthusiastic’ support at Cabinet for the idea – including from the PM – and it could apply to nine oligarchs sanctioned by the UK, Including Kirill Shamalov, Vladimir Putin’s former son-in-law.
Currently the state can freeze assets of people subject to sanctions, but cannot take possession of them without compensation.
Michael Gove (right) is proposing to ramp up the sanctions regime by requisitioning lavish residences without paying any compensation. It could apply to nine oligarchs sanctioned by the UK, including Kirill Shamalov (left), Vladimir Putin’s former son-in-law
A woman carries her baby at border crossing in Medyka, Poland, as refugees flee Russian invasion of Ukraine
However, the plan – reported by the Financial Times – is likely to require legislation, and government lawyers have raised concerns it would face legal challenges for undermining core property rights.
No final decision has been reached on whether to proceed, with one official telling MailOnline that it will need to happen in ‘days or weeks’ to be relevant.
The possibility of housing Ukrainian refugees in any properties has also been discussed, as they would be ‘the government’s to use’.
But sources said it might end up being more practical to sell and use the proceeds for other housing.
Liz Truss, UK foreign secretary, said on Monday that the government is working through a ‘hit list’ of Putin-linked oligarchs for sanctions.
However, there has been criticism at how long the process is taking, with suggestions that some are already getting rid of assets.
Mr Johnson told the House of Commons yesterday: ‘The vice is tightening on the Putin regime and it will continue to tighten.’
