No convictions for breaching sanctions on Russia

The UK's National Crime Agency (NCA) has stated that, to date, there have been no convictions in the UK for breaches of Russian sanctions. Financial sanctions against Russia were imposed following the annexation of Crimea in 2014 and the full-scale invasion of Ukraine in 2022. These sanctions include prohibitions on exporting weapons technology, assisting in the illegal trade of Russian oil, and providing general support to the Putin regime.

Four years ago, the UK introduced a law allowing for the conviction of those who breach sanctions. However, in a letter to MPs, the NCA's director noted the complexity of the cases and stated that only one charge has been brought. Last week, Foreign Secretary David Lammy said he would make it his "personal mission" to "cut off the revenue to Russia" through sanctions.

But critics have long claimed that Western sanctions are not as effective as initially hoped, with figures last year showing that the Russian economy was growing. The Office of Financial Sanctions Implementation (OFSI), which is part of the Treasury, is responsible for investigating potential breaches of financial sanctions. OFSI received an additional £50 million in funding in March to strengthen the enforcement of the UK sanctions regime.

Last October, BBC News revealed that OFSI was investigating 37 businesses with UK links for potential breaches of Russian oil sanctions. A further 15 cases have been closed without any fines or other penalties, and it is unclear how many cases have been closed since then. In September last year, the agency issued its first Russia-related penalty, fining a concierge company £15,000 for having sanctioned individuals on its client list. The London-based company, Integral Concierge Services, was found to have made 26 payments to or from someone whose assets had been frozen as part of Russian sanctions.

In November, MPs on the Treasury Committee questioned OFSI officials about the effectiveness of investigations, but officials stated that the NCA is ultimately responsible for prosecuting and convicting those found to have broken the rules. In a subsequent letter to the committee's chair, NCA Director Graeme Biggar noted the "complex and lengthy" nature of the cases. He stated that in similar countries, similar cases take an average of seven years to complete. The Sanctions and Anti-Money Laundering Act, used to bring prosecutions, was only introduced four years ago. Mr. Biggar said: "Financial investigations of this nature are often complex and lengthy. As such, there have been no concluded prosecutions for offences under the new Sanctions and Anti-Money Laundering Act."

He also added that the NCA is conducting "a number of investigations into breaches of financial sanctions and other related offences, some of which are awaiting prosecution decisions." In February last year, the NCA did bring charges against a former governor of a Crimean city, who was accused of seven counts of sanctions evasion and two of money laundering. The Treasury Committee Chair, Meg Hillier, said it was "essential that the government can demonstrate that there are consequences for breaching sanctions." She added, "We must maintain pressure on Russia-linked organisations and ensure there is a clear deterrent to anyone seeking to circumvent sanctions against Russia."

In November, David Lammy stated that Western sanctions have "deprived Russia of over $400 billion in revenue since February 2022, which is the equivalent of funding an extra four years of the invasion." When asked by MPs if he would take action against UK companies helping the Russian oil sector, he said, "I suspect there will be more to come in the coming days." It is understood that no such action has yet been taken, but the government did appoint former Labour MP Baroness Margaret Hodge as an anti-corruption champion in December.