The UK Treasury has initiated investigations into more than 50 UK-linked companies suspected of breaching Russian oil sanctions, yet no fines have been issued as of yet. The BBC obtained data through the Freedom of Information Act revealing that since December 2022, the government has launched 60 probes into potential violations of restrictions on the sale of Russian oil.
Regulations put in place during that time prohibit businesses from participating in the supply of Russian oil unless the price is below $60 (£46), also known as the “oil price cap”. Out of the 60 investigations, 52 involve companies with ties to the UK, with 37 still ongoing as of August.
Despite the investigations, the Office of Financial Sanctions Implementation (OFSI), responsible for enforcing the sanctions, has not imposed any fines for confirmed breaches. Anti-corruption campaigner Sir Bill Browder expressed his lack of surprise at the absence of fines, citing the UK’s insufficient resources and “appetite” for enforcing sanctions.
Sir Bill criticised the UK for its track record of creating laws but failing to effectively enforce them, unlike the US which has prosecuted individuals and imposed fines for sanctions violations. He warned that the lack of enforcement would enable Vladimir Putin to continue receiving funds to fuel the conflict in Ukraine.
In a separate incident, the OFSI fined a concierge company, Integral Concierge Services, £15,000 for breaching different sanctions by providing property management services to an individual subject to an asset freeze. This marked the first financial penalty issued for breaching sanctions related to Russia following the 2022 invasion of Ukraine.
Former Commons Foreign Affairs Committee chair Alicia Kearns previously raised concerns about the lack of penalties for sanctions breaches, emphasising the importance of enforcement actions aligning with increased asset freezes. The Treasury has been approached for a response on the matter.