A London-based customer has accused the Co-operative Group of discrimination after its legal services arm repeatedly refused to update his will solely because he was born in Russia, despite him having revoked his Russian citizenship decades ago and now holding dual British and German nationality.
A cancelled appointment and a recurring reason
The individual, identified only as AK, initially requested an update to a will originally drawn up by the Co-op in 2020. The changes were to name his partner and their daughter as beneficiaries. After receiving no follow-up for two months, he chased the matter only to be told his request had been cancelled because of his Russian birthplace.
AK explained that he moved to the UK as a child and formally revoked his Russian citizenship in 1999. The adviser reportedly acknowledged he had no current ties to Russia or Russian assets and rebooked the appointment. However, on the day of the rebooked meeting, no one contacted him. Upon calling, he was informed the appointment had been “erroneously” cancelled again for the same reason, and was rescheduled once more.
"No-risk" policy following legal advice
When the call finally took place, it was terminated within minutes. The Co-op subsequently stated it had received “specialist legal advice” instructing it not to provide advice to anyone born in Russia, irrespective of their current citizenship or connections.
This stance is linked to the strict financial sanctions imposed following Russia’s invasion of Ukraine. The Russia (Sanctions) (EU Exit) Regulations carry penalties of up to seven years imprisonment for breaches, leading many institutions to adopt cautious positions.
The Co-op defended its actions, stating: “If breached, the Russia regulations hold serious consequences for a business and those it employs. We therefore must carry out the correct due diligence to ensure we comply with these rules.” The firm said it would provide the service if AK supplied a certificate proving he had renounced his Russian citizenship.
Government guidance versus corporate interpretation
UK government guidance clarifies that individuals are not prohibited from accessing financial or legal services unless they are personally designated under a sanctions regime or connected to someone who is. AK confirmed he is not on the official list of designated persons.
When questioned by the Guardian, HM Treasury indicated that its regulations place more emphasis on a customer’s country of residence than their place of birth. However, it stated that ultimate compliance decisions rest with individual companies regarding who they choose to do business with.
AK finds the situation unpalatable, arguing he is being penalised for his birthplace alone. He was reluctant to provide the renunciation certificate on principle, as citizenship itself does not trigger sanctions. The Co-op has not fully explained its specific requirement for the document.
The case highlights the complex and sometimes harsh realities for individuals with Russian backgrounds navigating UK services amidst the ongoing geopolitical climate, even when their personal circumstances appear to fall outside the intended scope of sanctions.
