UK-linked firms suspected of busting Russia sanctions

The British government is investigating 37 UK-linked businesses for potentially breaking Russian oil sanctions - but no fines have been handed out so far, the BBC said, Report informs.

Financial sanctions on Russia were introduced by the UK and other Western countries following the invasion of Ukraine in 2022.

Conservative shadow foreign office minister Dame Harriett Baldwin said sanctions were designed to “shut down the sources of finance for Russia's war machine” and “bring this illegal invasion to an end sooner”.

The identities of the businesses are unknown but it’s understood some are likely to be maritime insurance firms.

The UK Treasury said it would take action where appropriate, but pointed to the complexity of the cases as a reason they take considerable time.

The sanctions include a cap on the price of Russian oil, designed to ensure that oil can keep flowing without Russia making large profits.

The cap prohibits British businesses from facilitating the transportation of Russian oil sold above $60 a barrel.

Data obtained by the BBC using Freedom of Information laws shows the Treasury has opened investigations into 52 companies with a connection to the UK suspected of breaching the price cap since December 2022.

As of August, 37 of those investigations were live and 15 had concluded, but no fines had been handed out.

Dame Harriett told the BBC “there is probably more that could be done” by the government and the oil sector itself “because it does appear that UK importers are still bringing in oil that originated in Russia”.

The anti-corruption organization Global Witness said it was “quite astonishing” that no fines have yet been handed out, and described the oil cap as “a sort of paper tiger” that is failing to crack down on rule-breaking.

Louis Wilson, the head of fossil fuel investigations at Global Witness, called for “bold action” to be taken against companies breaching sanctions.

Investigations into potential breaches of the oil cap and other financial sanctions are carried out by a Treasury unit called the Office of Financial Sanctions Implementation (OFSI).

OFSI issued its first Russia-related penalty last month when it fined a concierge company 15,000 pounds for having a sanctioned individual on its client list.

London-based firm Integral Concierge Services was found to have made or received 26 payments that involved a person whose assets have been frozen as part of the Russia sanctions.