UK sanctions against Russia are set to be strengthened as the
Government launches a new unit to help companies comply with
trade sanctions and penalise those who do not.
Following Russia's invasion of Ukraine, the UK implemented its
most comprehensive set of sanctions against a major economy, with
over £20 billion worth of trade with Russia now sanctioned.
The new Office of Trade Sanctions Implementation (OTSI),
launching today, will work with industry to make complying with
sanctions obligations as straightforward as possible by issuing
guidance and user-friendly online tools.
There has been overwhelming support from business in implementing
sanctions against Russia, and the vast majority of businesses
comply. For the minority that don't, OTSI will have powers to
publish information about sanctions breaches and impose civil
monetary penalties.
Business and Trade Secretary said:
Sanctions are vital in defunding Putin's illegal war and only by
working hand in hand with business can we make them as effective
as possible.
This new unit will help ensure businesses comply with trade
sanctions and take decisive enforcement action where needed so
that, together with business, we can continue to exert maximum
pressure on Putin's regime.
Sanctions Minister said:
This new government is resolutely committed to strengthening our
sanctions regime, with robust enforcement and penalties for those
who fail to comply. From Moscow to Tehran - kleptocrats,
aggressors and the enablers who support and facilitate their
wealth and malign actions should be on notice.
OTSI will be instrumental in providing vital additional tools not
only to help businesses comply with our sanctions, but also to
deter and impose costs upon those seeking to breach them.
The new unit is part of the Department for Business and
Trade. OTSI will work with businesses to offer guidance,
issue licences and investigate reports of trade sanctions
breaches.
Chloe Cina, international sanctions expert and Royal
United Services Institute (RUSI) fellow said:
Investing in a new specialist unit to issue guidance, grant
licences, and enforce certain trade sanctions across 21 UK
regimes is compelling evidence that the novel measures introduced
as part of the UK's response to Russia's invasion of Ukraine are
here to stay.
The industry will be reassured to see that the most complex
restrictions relating to professional services will now be dealt
with by OTSI directly from today.
This launch also sees new reporting obligations introduced for
financial services firms, money service businesses and legal
service providers. They will now be expected to inform OTSI of
suspected breaches of certain trade sanctions.
OTSI's new enforcement powers for trade sanctions complement
those HMRC already has. While HMRC remains responsible for the
enforcement of trade sanctions on goods that cross the UK border
as part of its customs role, OTSI now has lead enforcement
responsibility for sanctioned services leaving the UK, as well as
trade in sanctioned goods and services anywhere else in the world
where a UK business or person is involved.
Notes to editors:
- From today, OTSI takes on responsibility for issuing licences
for certain sanctioned activity – specifically the provision of
standalone services, including professional and business
services. Sanctions licensing for the export of goods and the
provision of ancillary services (services related to the export
of tangible goods) remain the responsibility of the Export
Control Joint Unit (ECJU). DBT's Import Controls Team continue to
be responsible for licensing the import of goods and other
activities (including provision of ancillary services) which are
prohibited under UK import sanctions. More information is
available here
- A full list of the UK's sanctions can be found here
- Businesses can visit GOV.UK to submit enquiries
or contact OTSI@businessandtrade.gov.uk.
