UK steps up pressure on Russian sanctions evasion network, doubles penalties for breaches

Britain on Monday ramped up ​pressure on shadow financial systems underpinning ‌Russia's war ​economy, doubling penalties for sanctions breaches, the UK Treasury said.

"We are ramping up the economic pressure on Putin and leaving those aiding his illegal ‌war with nowhere to hide," British finance minister John Healey said in a statement released as he attends his first G20 in North Carolina. European finance ministers and officials have bristled over the United States' move to invite ‌Russia to participate in the summit as Moscow's war against Ukraine continues.

"The UK and our allies ‌must step up our international cooperation to expose sanctions evasion, and disrupt the financial networks fuelling Russia's aggression," Healey said. He doubled the maximum fine available to the Office of Financial Sanctions Implementation (OFSI) to 100% from 50% of the value of a sanctions breach.

The UK ⁠National ​Crime Agency also issued ⁠a nationwide alert targeting the Kremlin-backed A7 network, which the British government has said was used to route funds, finance procurement and exploit ⁠foreign banking systems to evade restrictions. The alert aims to support the private sector in bearing down on sanctions evasion ​and ensure Russia pays the full cost of the sanctions, the UK Treasury said.

The Russian Embassy ⁠in London said Britain's latest measures targeting the A7 network constituted a continuation of its policy of "illegal unilateral sanctions and would not ⁠influence Moscow's ​course". The embassy said such restrictions only destabilised international trade and financial stability and harmed the economies of the countries imposing them.

Russia would continue to defend its interests and economic actors through lawful means, the ⁠embassy added. Britain had in May targeted Russia-linked cryptocurrency platforms, banks and financial networks that it said were used to ⁠bypass sanctions, freezing ⁠their assets and barring UK firms from processing payments and holding correspondent banking ties.

The UK also announced new sanctions this month targeting Russian ships, banks and industrial ‌companies.