Sanctions: Russia

The action taken by the UK and its Coalition partners to limit Russian energy revenues is having a significant impact, with data from Russia’s Ministry of Finance showing there was a 30% reduction in Russian government tax revenues from oil in 2023 compared to 2022.

HM Treasury’s Office of Financial Sanctions Implementation (OFSI) is the authority responsible for implementing financial sanctions and the Oil Price Cap. OFSI takes a proactive enforcement approach based on its enhanced intelligence and monitoring capabilities, and is currently undertaking a number of investigations into suspected breaches of the price cap, using powers under the Sanctions and Anti Money Laundering Act (SAMLA) to request information and working closely with our international partners in the G7+ Oil Price Cap Coalition.

Industry compliance is further strengthened through guidance and alerts, for example the compliance and enforcement alert issued in February 2024 on the Oil Price Cap, which highlighted to industry red flags for sanctions evasion.

Enforcement outcomes are never immediate, as complex investigations, including following due process, take time. The length of OFSI’s investigation process is consistent with international standards. OFSI assesses every instance of reported non-compliance and takes action in all cases where it is appropriate to do so. This was demonstrated by OFSI’s penalty against the British company Integral Concierge Services Limited on 27 September, for committing serious breaches of UK sanctions imposed as a result of Russia’s illegal invasion of Ukraine in 2022.

The UK has also taken action directly targeting shadow fleet vessels and entities that seek to undermine UK sanctions and facilitate the trade and transportation of Russian oil and oil products.