Russia Sanctions: UK announces new unit to clamp down on companies evading sanctions

Companies who are found to be dodging strict Russia sanctions, including those imposed since the war in Ukraine, will face tougher penalties with the creation of a new Office of Trade Sanctions Implementation (OTSI). 

Industry and Economic Security Minister Nusrat Ghani is today announcing the creation of a new unit to crack down on companies dodging Russian sanctions.

The OTSI will be responsible for the civil enforcement of trade sanctions, including those against Russia. The unit will help businesses comply with sanctions and investigate potential breaches, issuing civil penalties and referring cases to HMRC for criminal enforcement where needed.

Its remit will involve activity by companies who may be avoiding sanctions by sending products through other countries.

The news comes as the UK is expected to announce fresh sanctions targeting the latest items Ukraine has found on the battlefield such as machine parts and chemicals, as well as products that raise revenue to fund Putin’s war machine.

“Our package of sanctions, the most severe ever imposed on a major economy, is working – goods imports from Russia to the UK have already plummeted by 94%.  

“But we are leaving no stone unturned in our commitment to stopping Putin’s war machine. That means clamping down on sanctions evaders and starving Russia of the technologies and revenues it needs to continue its illegal invasion.  

“Today’s announcement will help us do that, and send a clear message to those breaking the rules that there is nowhere to hide,” – Industry and Economic Security Minister Nusrat Ghani.

The UK and it’s international partners have implemented the most severe package of sanctions ever imposed on a major economy, with an unprecedented £20 billion of UK-Russia goods trade now sanctioned. The evidence shows the sanctions are working, with UK-Russia trade falling to historic lows.

OTSI will launch in early 2024 once the new legal requirements are in place and will reinforce existing work the government does to ensure UK trade sanctions are adhered to.

Click here for more on Russia Sanctions at EU Today