Russian ‘dirty money’ flowing through London

LONDON: "Dirty" Russian money hidden in British assets and laundered through City of London financial institutions is undermining the government´s efforts to take a tougher stance against Moscow´s "aggressive foreign policy", UK lawmakers said on Monday.

Britain´s financial centre has been a big beneficiary of the massive flight of Russian cash since the 1991 fall of the Soviet Union.

London remains the Western capital of choice for Russian officials and oligarchs who flaunt their wealth across Europe´s most luxurious destinations.

But diplomatic relations between London and Moscow have hit a post-Cold War low after the poisoning of a former Russian double agent in an English city that Prime Minister Theresa May blamed squarely on Russia.

Moscow denies any involvement. May has vowed to clamp down on Russian money but a report by parliament´s Foreign Affairs Committee accused her government of failing to back up its rhetoric with credible action.

"There is no excuse for the UK to turn a blind eye as President (Vladimir) Putin´s kleptocrats and human rights abusers use money laundered through London to corrupt our friends, weaken our alliances, and erode faith in our institutions," said committee chairman Tom Tugendhat.

"The scale of damage that this ´dirty money´ can do to UK foreign policy interests dwarfs the benefit of Russian transactions in the City.

"The Kremlin dismissed the report as an attempt to whip up Russophobia and to harm legitimate Russian business interests.

"This is nothing other than the latest step in line with unfriendly, unfair competition (against Russian business)," Kremlin spokesman Dmitry Peskov told reporters.