New sanctions ban every item Russia is using on the battlefield

·       New sanctions ban export of every item Ukraine has found Russia using on the battlefield to date.   

·       UK sanctions on Russia top 1,500 as FCDO targets 92 individuals and entities, including those connected to Rosatom.   

·       Putin’s closet allies also sanctioned, including his former Chief of Security and the CEO of Nord Stream 2.   

Foreign Secretary James Cleverly has today (24 February) announced a new package of internationally co-ordinated sanctions and trade measures, including export bans on every item Russia has been found using on the battlefield to date.   

Included in the hundreds of goods are aircraft parts, radio equipment, and electronic components that can be used by the Russian military industrial complex, including in the production of UAVs. 

Military intelligence has shown that a shortage of components in Russia as a result of sanctions is already likely affecting their ability to produce equipment for export, such as armoured vehicles, attack helicopters and air defence systems. As a result, it is highly likely that Russia’s role as a reliable arms exporter and their military-industrial complex are being undermined by international sanctions. Today’s measures will damage them further, undermining Putin’s military machine which is already having to mobilise soviet-era tanks and harvest freezers for low-grade chips.  

Foreign Secretary James Cleverly said:   

“Ukrainians are turning the tide on Russia, but they cannot do it alone. That is why we must do more to help Ukraine win.”    

“Today we are sanctioning the elites who run Putin’s key industries and committing to prohibit the export to Russia of every item Russia has been found using on the battlefield.”  

Also sanctioned today are senior executives at Russian state-owned nuclear power company Rosatom, plus executives from Russia’s two largest defence companies, four banks, and other Russian elites. Rosatom has deep connections to the Russian military-industrial complex - including through Alexander Novak who is both a member of the supervisory board and the Deputy Prime Minister in Putin’s administration.   

The state-owned firm has reportedly been supplying arms manufacturers with the technology and materials needed to resupply Russia’s front line, including to defence firms that are under sanctions.     

Four banks, including MTS, are also being sanctioned as part of today’s package. This will further isolate Russia from the international financial system and help the UK and partners to prevent circumvention.    

Today’s designations also target the individuals and entities at the heart of Putin’s military-industrial complex, including:    

·        34 executives connected to Russia’s two largest defence companies:   

·       Rostec, Russia’s multibillion state owned defence conglomerate   

·       Almaz-Antey Corporation, a state owned Russian company specialising in producing surface to air missiles and firearms for aircrafts.    

·       6 Russian entities involved in the manufacture or repair of military equipment for Russia’s armed forces, including aviation and navy    

·       5 senior Iranian executives in Qods Aviation Industry, the company manufacturing the drones used in Ukraine, which demonstrates our commitment to continue to pressure third countries supplying Russia’s military.       

The UK is also announcing new major trade measures, undermining Russia’s military machine and cutting at Putin’s finances. Alongside banning exports of products found used by Russia on the battlefield, the UK will also ban the import of [140] goods including iron and steel products processed in third countries.    

Business and Trade Secretary, Kemi Badenoch said:  
 

"Trade sanctions are working. UK goods imports from Russia have fallen by 99%, since before the invasion, and goods exports to Russia have fallen by nearly 80%.”  

“Working together with our G7 international partners, the Department for Business and Trade is delivering sanctions to further erode Putin's capabilities to wage war against Ukraine. We will back Ukraine for as long as it takes."   

The UK has also announced that it will be extending existing measures against Crimea, and non-government controlled territory in Donetsk and Luhansk oblasts, to target Russian controlled areas of Kherson and Zaporizhzhia oblasts, restricting their access to UK trade and finance.   

Today’s measures also increase pressure on the Russian elite. This includes sanctions on:   

·       Mattias Warnig – a close friend of Putin’s, the CEO of Nord Stream 2, and previously a member of the boards of Russian energy companies Transneft and Rosneft   

·       Lyubov Kabaeva - mother of former Russian gymnast and Duma Deputy Alina Kabaeva who allegedly has a close personal relationship with Putin. The Kabaeva family reportedly own millions of pounds’ worth of property in Russia   

·       Alexei Dyumin - formerly Putin’s chief security guard who played a key role in the annexation of Crimea. Dyumin has been actively involved in supporting the Russian military in Ukraine, including launching and facilitating a drone training school for Russian troops   

·       Alexei Kozak, son of the former Deputy PM and Putin ally Dmitry Kozak   

·       20 executives of Gazprom and Aeroflot, including Gazprom Chairman and former Russian Prime Minister Viktor Zubkov and two current Russian Ministers. 

Today’s new measures come as the Foreign Secretary travels to the UN, where he will urge the international community to support Ukraine as long as it takes, one year on from the start of Russia’s illegal full scale invasion   

[ENDS]

Notes to editors:

Impact 

·       The UK and our international partners have implemented the most severe package of sanctions ever imposed on a major economy and they’re working - even Putin has admitted that sanctions are causing a “colossal amount of difficulties”   

·       Since Russia began its full-scale invasion of Ukraine, the UK has sanctioned over 1,500 individuals and entities, including 24 banks with global assets of over £940 billion and over 120 oligarchs with a combined net worth of over £140 billion.   

·       £20 billion of 2021 UK-Russia bilateral trade in goods is now under full or partial sanction. There has been an over 99% reduction in UK goods imports from Russia in September-November 2022 compared to Sept-Nov 2021 and an 80% reduction in UK goods exports to Russia in September to November 2022 compared to Sept-Nov 2021  

·       Over 1,000 foreign businesses have left or are leaving Russia, undoing the vast majority of foreign investment made in Russia since the fall of the Soviet Union. All the major credit-rating agencies have downgraded Russian debt to “junk” status.  

·       Sanctions are starving Russia of key Western goods and technology, degrading its productive capacity as it struggles to source high-quality inputs and investment. Russia’s imports of sanctioned goods are down by almost 50% and have fallen from sanctioning and non-sanctioning countries.  

·       Russia has had to mobilise soviet-era tanks and missiles  

·       Russian tanks have been getting stuck in the mud after using cheap Chinese tyres  

·       Russia has reportedly been harvesting fridges and freezers for low-grade chips, unable to access the technology needed to replace lost weapons  

·       Reports suggest Russia is failing to pay or equip its troops properly   

New Sanctions  

34 executives connected to Russia’s two largest defence companies, Rostec and Almaz-Antey Corporation, have been sanctioned. Rostec isRussia’s biggest defence company – having previously exported more than £10bn of arms as year and employed more than two million people. The Almaz-Antey Corporation are a state owned Russian company specialising in producing surface to air missiles and firearms for aircrafts. Both Rostec and Almaz-Antey Corporation have already been sanctioned. These sanctions also capture all the subsidiary companies that they control.

Since the invasion, the UK has designated 24 Russian banks, with global assets of around £940bn. The latest package delivers designations on four additional Russian banks: BANK ZENIT, BANK ST PETERSBURG, URALSIB and MTS BANK. We have designated these banks on the grounds that they were obtaining a benefit from or supporting the Government of Russia by carrying on business in sector of strategic significance to Russia, namely the financial services sector.   

6 Russian entities involved in the manufacture or repair of military equipment for Russia’s armed forces, including aviation and navy have also been sanctioned today. They are:  

·       JSC ZVEZDA develops and manufactures aviation equipment that is supplied to Russia’s armed forces.   

·       LLC ZAVOD SOKOL manufactures and repairs weapons and military equipment for Russia’s armed forces with a focus on aviation equipment.   

·       JSC LOMO manufactures optical systems for man-portable air defence systems and supplies Russia’s armed forces.   

·       JSC IZUMRUD develops and manufactures shipborne radar systems, radio navigation equipment and remote control radio equipment for the Russian navy.   

·       ZAVOD ELEKON designs and manufactures electrical connectors with evidence to suggest they supply the Russian defence sector.   

·       JSC REMBAZA is supplier in multiple Russian government and state contracts and was granted a license in January 2023 for the servicing of weapons and military equipment.  

New Trade measures  

·       The UK has been working with Ukraine and the EU to understand which goods Russia is using on the battlefield and to sanction them  

·       The UK will continue allowing the flow of medical and food products to Russia.  

·       HMG is preparing legislation for the trade sanctions announced today. It will be laid before Parliament in due course. 

Asset freeze  

·       An asset freeze prevents any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held or controlled by the designated person. UK financial sanctions apply to all persons within the territory and territorial sea of the UK and to all UK persons, wherever they are in the world. It also prevents funds or economic resources being provided to or for the benefit of the designated person.  

Travel ban  

·       A travel ban means that the designated person must be refused leave to enter or to remain in the United Kingdom, providing the individual is an excluded person under section 8B of the Immigration Act 1971.  

Transport sanctions  

·       Recently introduced powers make it a criminal offence for any Russian aircraft to fly or land in the UK and give the government powers to remove aircraft belonging to designated Russian individuals and entities from the UK aircraft register, even if the sanctioned individual is not on board. Russian ships are also banned from UK ports.