Russia sanctions: Fears over UK enforcement by HMRC

Published

12 hours ago

January 17, 2025

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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.

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.”

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.

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.

World

Qatar’s PM says Israel-Hamas ceasefire deal is ‘last chance for Gaza’

Published

6 mins ago

January 17, 2025

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Qatar's PM says Israel-Hamas ceasefire deal is 'last chance for Gaza'

The ceasefire deal is “the last chance for Gaza”, Qatar’s prime minister has said, adding: “Failure is not an option.”

In an exclusive interview with Sky News’ Yalda Hakim, Sheikh Mohammed bin Abdulrahman al Thani warned that “peace won’t happen” if there is not a Palestinian state.

He also criticised parties for the time it took to reach a deal.

Qatar has been one of the key mediators between Israel and Hamas in the more than 15 months since the renewed conflict erupted.

Mr al Thani told Sky News: “What we have reached with this deal is the last chance for Gaza. To save Gaza from this war this is our last chance.

“When we talk about peace in general, peace won’t happen without a Palestinian state at the end of the day. To address the root cause of the issue and not to just address the symptoms of the issue.”

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Asked what the consequences of the ceasefire deal collapsing would be, he said: “Failure is not an option. That’s what all of us should aspire to.

“If it fails we will not give up we will make sure it is rehashed again and the parties are adhering to that.”

Mr al Thani said Qatar’s role was as “guarantor and mediators” and that they would make sure the deal is delivered.

He talked about creating a “safety net” for any issues to be resolved before the deal “explodes”.

Qatar’s prime minister also criticised the negotiating parties for the time it took to agree a deal, saying that it was the same framework agreed upon in December 2023.

“Which is basically 13-months of a waste of negotiating the details that has no meaning and is not worth a single life that we lost in Gaza or a single life of the hostages lost because of the bombing.”

He also touched on US president-elect Donald Trump, who he said could “create a greater impact for the region”.

Commenting on how the incoming administration has operated during negotiations, he said: “I believe if this continues to be the attitude and approach for the next four years, we can create a lot of good things for the region.”

Elaborating on the need for a Palestinian state next to an Israeli state, he said: “That’s what we are aiming for.

“And I believe this moment we count on the wisdom of the leadership of the world. To really push for a solution at the end to the day.”

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Israel’s security cabinet recommends approving Gaza ceasefire deal

Published

3 hours ago

January 17, 2025

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Israel's security cabinet recommends approving Gaza ceasefire deal

Israel’s security cabinet has approved a deal with Hamas for a ceasefire in Gaza and the release of hostages and prisoners.

It will now go to the full cabinet for final sign-off, with a meeting said to be scheduled for this afternoon.

A statement from Prime Minister Benjamin Netanyahu’s office said approval came “after examining all political, security and humanitarian aspects” and with the understanding it “supports the achievement of the war’s goals”.

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If passed, the truce could begin on Sunday.

In its first stage, the deal would see 33 of the 98 hostages freed over the course of six weeks. About half of the 98 are believed to be alive.

The remainder are to be released in a second phase that will be negotiated during the first.

Hamas has said it won’t release everyone without a lasting ceasefire and a full Israeli withdrawal.

Between 990 and 1,650 Palestinian prisoners and detainees will be released in exchange, depending on the number of hostages freed.

Hardliners in Israel’s coalition government have criticised the deal as giving in to Hamas and security minister Itamar Ben-Gvir threatened to resign if it was approved.

However, he said he wouldn’t bring down the government and ministers are expected to approve it.

The ceasefire has been long in the works and there have been false dawns, but on Wednesday a deal was done after mediation by Qatar, Egypt and the US.

Israel has continued strikes on Gaza in the meantime, and Palestinian officials said 86 people were killed the day after the agreement was unveiled.

More than 46,000 people have been killed in Israel’s offensive in Gaza – mostly women and children – according to officials there.

Around 1,200 were murdered in Israel – alongside more than 250 who were kidnapped – in the October 2023 Hamas terror attack that started the war.

Israel has said it wants to wipe out the group and that it’s killed some 17,000 of its fighters.

However, it’s been accused of not doing enough to protect civilians – claims it denies – in a war that’s devastated Gaza, displaced hundreds of thousands and left many starving.

The World Health Organisation has said it should be possible to dramatically increase Gaza aid to about 600 trucks a day under the deal.

An average of 51 entered in early January, according to UN data.

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Flights forced to divert to avoid debris from SpaceX Starship explosion

Published

3 hours ago

January 17, 2025

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Flights forced to divert to avoid debris from SpaceX Starship explosion

Dozens of planes have been forced to divert or fly holding patterns to avoid potential debris from the SpaceX rocket that blew up.

The US Federal Aviation Administration (FAA) said it briefly slowed and re-routed planes in the area where the pieces were falling back to earth.

Tracking app FlightRadar24 said its most-watched flights last night after the “rapid unscheduled disassembly” – as Space X called it – were those holding or diverting over the Caribbean.

It appeared to show several planes flying circular holding patterns, including a Spirit jet heading to Puerto Rico and an Air Transat flight bound for the Dominican Republic.

A Boeing 767 transporting Amazon cargo diverted to Nassau in the Bahamas, while a JetBlue flight turned back to where it began in Fort Lauderdale, Florida.

The FAA often closes airspace for space missions and can create a “debris response area” to protect aircraft if a rocket has a problem outside the original closed zone.

Spectacular video on social media showed the debris from the 400ft Starship rocket streaking across the sky, with another clip showing it from the cockpit of a small plane.

Despite the rocket blowing up, SpaceX owner Elon Musk appeared to see the bright side, posting on X: “Success is uncertain, but entertainment is guaranteed!”

SpaceX launched the rocket from Boca Chica, south Texas, on Thursday around 4.40pm local time (10.40pm in the UK).

The flight was the seventh test for the newly-upgraded Starship, which was due to make a controlled splashdown in the Indian Ocean about an hour after launch.

But the company said it lost contact about eight and half minutes into the flight, with the last data indicating an altitude of 90 miles and a velocity of 13,245 mph.

There was some success though – the booster section returned to a launchpad and was caught between two giant mechanical arms.

It’s the second time SpaceX has managed this particular feat and it’s part of its effort to reuse hardware and make space travel cheaper – with getting to Mars the big aim.

SpaceX’s Falcon 9 rocket also successfully launched two moon landers earlier this week, while Jeff Bezos also had a big win early Thursday morning.

The Amazon boss’s company, Blue Origin, put its New Glenn rocket into orbit for the first time.