Rishi Sunak has urged firms to consider selling their Russian assets as he said there was “no case” for new investments in the country.

The Chancellor praised moves by firms such as BP, Shell and Aviva  to reduce or sell holdings in Russia, but called for further action to inflict “economic pain” on Vladimir Putin’s regime.

Where firms needed time to wind down their investments because of hurdles such as the sanctions placed on Moscow, they could still send “signals of intent”, Mr Sunak said.

Speaking after talks with asset managers and owners last week, he welcomed the “consensus” on the need to “economically isolate Putin and his regime” but said more needed to be done to deter the Russian onslaught in Ukraine.

‘Inflict maximum economic pain’

He said: “I welcome commitments already made by a number of firms to divest from Russian assets – and I want to make it crystal clear that the Government supports further signals of intent.

“I am urging firms to think very carefully about their investments in Russia and how they may aid the Putin regime, and I am also clear that there is no case for new investment in Russia.

“We must collectively go further in our mission to inflict maximum economic pain and to stop further bloodshed.”  

Shortly after the invasion, Shell pledged to sever ties with the Kremlin by exiting its joint ventures with Gazprom, the Russian state-backed energy giant . The company’s Russian assets were valued at $3 billion at the end of last year.

BP announced that it would divest its near-20 per cent stake in Rosneft, another state-controlled energy firm.

Mr Sunak has said there is now a “strong moral imperative” on British companies to isolate Russia.