UK Investigates 37 Businesses for Breaching Russian Oil Sanctions, No Fines Issued Yet

The UK Treasury is currently investigating 37 UK-linked businesses suspected of breaching sanctions on Russian oil, according to a BBC report. Introduced after Russia invaded Ukraine, the sanctions include a price cap of $60 per barrel on Russian oil, limiting UK businesses from facilitating its transportation. Despite 52 companies being under investigation since December 2022, no fines have been issued so far. Critics argue this reflects a lax approach to enforcing sanctions, with some firms thought to be evading rules through maritime insurance loopholes.

Sir William Browder, head of the Global Magnitsky Justice Campaign, labeled the lack of prosecutions an “embarrassment” and suggested the UK struggles to enforce economic sanctions effectively. Louis Wilson from Global Witness expressed surprise that no penalties had been imposed, describing the oil cap as a “paper tiger.” He emphasized that the government must stop enabling Russian profiteering to set an example for other countries.

The Office of Financial Sanctions Implementation (OFSI) received £50 million in funding to bolster its enforcement of sanctions but has only recently issued its first penalty — a £15,000 fine to a London concierge firm for sanctions violations unrelated to oil. Calls for stronger action continue, especially as some suspect Russian oil may be entering the UK through third-party refineries.

Pic Courtesy: google/ images are subject to copyright