British companies admit violating sanctions against Russia – 11/07/2023 – World

More than a hundred UK companies have admitted violating state sanctions against Russia since last year’s invasion of Ukraine, official figures show.

In total, 127 companies had voluntarily disclosed their sanctions violations by May 17, a freedom of information request made to the government and seen by the Financial Times shows.

By admitting violations and cooperating with investigations, companies can reduce their penalties.

The UK has imposed sanctions on more than 1,600 people and companies since the Russian hack in February 2021. In response to the war, the UK formed its harshest package of sanctions against a major economy, placing a moratorium on UK entities that they deal with more than ten banks and more than a hundred oligarchs.

Stacy Keen of law firm Pinsent Masons — which made the access to information request — says the breadth of the sanctions created a test for British business, given how much more integrated Russia was into the global economy compared to other regimes. under sanctions, such as Iran and North Korea.

“The sanctions packages were felt more intensely outside of Russia, unlike what happened in other cases,” she says. “Russian individuals and organizations had a presence outside of Russia that perhaps members of the Iranian and Syrian regimes did not have.”

Companies admit infractions to ensure greater leniency, Keen adds. Penalties for sanctions can range from no action or a warning letter, to a civil penalty or criminal prosecution. Financial penalties have no limit.

The Office of Financial Sanctions Implementation (OFSI) is responsible for monitoring violations. A person close to the agency said the unit is “not trying to unduly penalize honest mistakes” and takes into account relevant efforts and checks made as possible mitigating factors when assessing a violation.

Issues relating to a lack of transparency, as well as Russian shareholders who may be behind shell companies, could make it difficult for UK companies to ensure they have not breached sanctions.

The extent of links between the UK and Russia across a range of sectors was demonstrated last year when the Chelsea club was plunged into crisis after the UK announced sanctions against its then-owner, Russian oligarch Roman Abramovich. The move halted the sale of the Premier League team and put its sponsorship deals at risk.

Western sanctions have frozen US$300 billion (R$1.4 trillion) belonging to Russia’s Central Bank since the invasion of Ukraine. European Union leaders last month endorsed plans to use billions of euros in earnings generated by frozen Russian assets to help Ukraine. The European Commission is expected to present proposals on the matter in early December.