Russia sanctions: Fears over UK enforcement by HMRC
Fears have been raised over the robustness of Britain’s trade sanctions against Russia after the main government department enforcing the rules admitted it has no idea how many cases it is investigating.
HM Revenue and Customs (HMRC), which monitors and polices flows of goods in and out of the country, says it had no central record of how many investigations it’s carrying out into Russian sanctions. It also said that while it had issued six fines in relation to sanction-breaking since 2022, it would not name the firms sanctioned or provide any further detail on what they did wrong.
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The disclosures were part of a response to a Freedom of Information (FOI) request from Sky News, as part of its wider investigation into the sanctions regime against Russia.
In recent months we’ve reported on data showing flows of goods, including dual-use items which can be turned into weapons, from the UK into Caucasus and Central Asian states. We’ve shown how luxury British cars are being transported across the border from the Caucasus into Russia. And we’ve shown the contrast between rhetoric and reality on the various rules clamping down on trade in Russian fossil fuels.
But despite the challenges facing the sanctions regime, information on the enforcement of those sanctions is quite scant. The Office of Financial Sanctions Implementation (OFSI) has so far only imposed a single £15,000 fine for breach of financial sanctions – in other words those moving money in or out of Russia or helping sanctioned individuals do so.
HMRC has so far issued six fines in relation to Russian sanctions, but it refused to name any companies or individuals affected by the fines – or to provide any further details on what they were doing to break the rules. And, unlike other organisations, such as OFSI, it has never said how many cases it is working on – giving little sense of the scale of the pipeline of forthcoming action.
Fines
Asked by Sky News to provide such details under FOI legislation, HMRC said: “The number of current investigations which may involve these sanctions, regardless of the eventual outcome, is not centrally recorded.
“To determine how many investigations are within scope of your request would require a manual search of a significant number of records, held by different business areas. Not all investigations reach the level of formal cases being opened, but these investigations are still recorded as compliance activity which would need to be manually reviewed to provide an answer.”
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Mark Handley, a partner at law firm Duane Morris, has spent years monitoring the information released on sanctions cases. He said: “If you’re trying to organise an organisation like HMRC in terms of resourcing and all the rest of it, you would think that they might know how many investigations they have ongoing and how to staff all of those. So I’m surprised that they didn’t have that number to hand.”
HMRC also said it would protect the privacy of companies fined for breaking sanctions rules. The FOI response continued: “HMRC do not consider that disclosing the company name would drive compliance, promote voluntary disclosure or be proportionate.”
This is in stark contrast to other countries, notably the US, where companies are routinely named and shamed in an effort to drive compliance.
Enforcement
Leigh Hansson, partner at legal firm Reed Smith and a sanctions expert, said: “The US loves to name and shame, and I think from a US compliance perspective, it’s actually done quite a lot in further enforcing compliance both within the United States and globally.
“Because once you see a company [has] been fined or they’re placed on the specially-designated nationals list, all the other companies in their industry call around going: ‘hey, am I next?’
“And they want to know what it is that the company did – how did they violate sanctions?”
“One of the things the United States does in these penalty announcements is they provide background on the things the company did wrong, but these are also the things the company did right… And the information that they publish is quite helpful.”
The absence of such disclosure in the UK means both businesses and the public more widely have less clarity on the rules – which in turn may help explain why the regime has been more leaky than expected, with goods still flowing towards Russian satellite states, despite the fact that sanctions prohibit even indirect flows of goods to Russia.
Mr Handley said one consequence of the secrecy from HMRC is that “you’re operating in a vacuum, at the moment. Because the government’s not giving you the information that tells you what kind of conduct gets you to a civil settlement as opposed to a criminal prosecution”.
“So, again, even if you’re keeping the name anonymous, you can help businesses and individuals behave better and properly by giving more information,” he added.
Israel pounded the outskirts of Gaza City overnight, as Benjamin Netanyahu’s government vowed to press on with a planned offensive on the city.
Families streamed out of the city as the explosions hit.
“I stopped counting the times I had to take my wife and three daughters and leave my home in Gaza City,” said Mohammad, 40.
“No place is safe, but I can’t take the risk. If they suddenly begin the invasion, they will use heavy fire.”
Mahmoud Abedrabo mourns over the body of his son Hamada in Gaza City on 24 August. Pic: Reuters
Others said they would prefer to die and not leave.
“We are not leaving, let them bomb us at home,” said Aya, 31, who has a family of eight, adding that they couldn’t afford to buy a tent or pay for the transportation.
“We are hungry, afraid and don’t have money,” she said.
Mourners pray next to the body of Palestinian boy Hamada Abedrabo on 24 August. Pic: Reuters
Witnesses said that overnight they heard nonstop explosions in Zeitoun and Shejaia.
Tanks shelled houses and roads in Sabra, and buildings were blown up in Jabalia.
On Sunday, the IDF said its forces had returned to combat in Jabalia to strengthen its control of the area and dismantle militant tunnels.
Smoke rises following an Israeli strike in Gaza City. Pic: Reuters
It added that the operation there “enables the expansion of combat into additional areas and prevents Hamas terrorists from returning to operate in these areas.”
This month, Israel approved a plan to seize control of Gaza City. The offensive isn’t expected to start for another few weeks.
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In the meantime, mediators in Egypt and Qatar are trying to resume ceasefire talks between the two sides.
On Friday, Israel’s defence minister Israel Katz said that Gaza City will be razed unless Hamas releases all its remaining hostages and ends the war on Israel’s terms.
Mourners transport the body of Ahmed Balata on 24 August. Pic: Reuters
Around half of Gaza’s two million residents currently live in the city and on Friday a global hunger monitor said that Gaza City and its surrounding areas are officially suffering from famine that will likely spread.
Israel said the monitor ignores steps Israel has taken since late July to increase aid supplies into and across Gaza.
Eight more people died of malnutrition and starvation in Gaza, according to the Hamas-run Gaza health ministry on Saturday.
281 people, including 114 children, have now died of malnutrition and starvation since the war started, according to the ministry.
The war began on 7 October 2023, when Hamas-led gunmen killed around 1,200 people in southern Israel, mainly civilians, and took 251 hostages.
Since then, Israel has killed at least 62,000 Palestinians, according to the Gaza health ministry, and internally displaced nearly its entire population.
Two married couples have died after a British car veered off the road and crashed in Germany, according to police.
The fatal accident happened shortly after midnight on Saturday in the trees near a highway in the Kassel district, north of Hesse in central Germany.
The 32-year-old male driver, a 31-year-old female passenger, a 32-year-old female passenger, and a 30-year-old female passenger all died at the scene, despite the efforts of German emergency services.
Sky News understands UK officials have not been contacted for assistance.
At roughly 12.30am on Saturday, the car appears to have veered off the road and crashed into nearby trees around 30m from the road, according to the Kassel police department.
Pic: Feuerwehr Reinhardshagen
One of the victim’s phones automatically alerted the emergency services to the incident, who sent an ambulance to the scene.
Soon, fire engines, ambulances, command vehicles and emergency support vehicles were all dispatched.
When emergency workers arrived, the car was lying on its side, wedged between several trees.
It wasn’t until they removed the roof that they found all four passengers.
Pic: Feuerwehr Reinhardshagen
The accident happened on Highway L3229
The emergency workers who dealt with the victims were immediately supported by the specialist mental health workers at the fire station in Reinhardshagen.
“This high number of deaths is an extraordinary operation for our Reinhardshagen Volunteer Fire Department,” said a fire department spokesperson.
“For some of the emergency personnel, it is the first time they have been confronted with death in this way.
“Therefore, a great deal is being done to help us process these images. We will also discuss this among ourselves and within families, because not everyone can easily shake off what they have seen.”
An investigation into the accident is ongoing and is being conducted by the Hofgeismar police station.
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