• Minister Ghani announces new Office of Trade Sanctions Implementation (OTSI) to strengthen enforcement and clamp down on companies dodging Russian sanctions 
• The unit will increase power to issue penalties for trade sanctions breaches and refer cases for criminal enforcement to HMRC 
• Goods imports from Russia are already down 94% in the year following the full-scale invasion of Ukraine

Companies that circumvent the strict trade sanctions, including those imposed since the war in Ukraine, will face harsher penalties with the creation of the new Office of Trade Sanctions Implementation (OTSI). 

The OTSI will be responsible for the civil enforcement of trade sanctions, including those against Russia. The unit will help businesses comply with sanctions and investigate potential breaches, issuing civil penalties and referring cases to HMRC for criminal enforcement. 

Its remit will involve activity by companies who may be avoiding sanctions by sending products through other countries. 

The news comes as the UK is expected to announce fresh sanctions targeting the latest items Ukraine has found on the battlefield, such as machine parts and electronics, as well as products that raise revenue to fund Russia’s war against Ukraine. 

Industry and Economic Security Minister Nusrat Ghani said:

“Our package of sanctions, the most severe ever imposed on a major economy, is working – goods imports from Russia to the UK have already plummeted by 94%. 

But we are leaving no stone unturned in our commitment to stopping Putin’s war machine. That means clamping down on sanctions evaders and starving Russia of the technologies and revenues it needs to continue its illegal invasion. 

Today’s announcement will help us do that and send a clear message to those breaking the rules that there is nowhere to hide.

The UK and our international partners have implemented the most severe sanctions ever imposed on a major economy, with an unprecedented £20 billion worth of UK-Russia goods trade now sanctioned. The evidence shows the sanctions are working, with UK-Russia trade falling to historic lows.”

Sanctions Minister Anne-Marie Trevelyan said:

“Today’s announcement will further strengthen the UK’s sanctions system and allow us to maximise trade sanctions' impact on those who continue to flout the global rules. 

Without international sanctions, we estimate Russia would have over $400 billion more to fund the war, enough to fund the invasion for a further four years. We are hitting Russia where it hurts and starving Putin of the resources he needs to fund his illegal war on Ukraine.”

Department for Business and Trade, Office of Trade Sanctions Implementation, Foreign, Commonwealth & Development Office, and Nusrat Ghani MP

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