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UK Unveils Fines Against 4 Exporters for Sanctions, Export Control Breaches

The U.K. recently fined four exporters more than $2 million combined for breaching the country’s export controls, including one for violating trade restrictions against Russia, the country announced Nov. 4.

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The U.K.’s revenue and customs agency said it imposed a 58,426.45 pound penalty, or just over $75,000, against an exporter in August that illegally shipped goods in violation of the country’s sanctions against Russia. The U.K. didn’t name the exporter but said they paid the fine as part of a settlement agreement with the agency.

The U.K. has in place “the most severe package of sanctions ever imposed on a major economy, which has deprived the Russian state of over $400 billion in funding for its war machine,” the agency said. “Failure to comply with these sanctions is a serious offence and those who breach them may be subject to a range of enforcement actions, including large financial penalties or referral for criminal prosecution.”

The U.K. said it has reached six settlements with U.K. companies since February 2022 for breaching Russia sanctions, totaling 1,363,129 pounds in fines, or more than $1.7 million.

In a separate notice, the U.K.’s Export Control Joint Unit said it issued three penalties valued at more than 1.9 million pounds (about $2.5 million) combined between August and September. The agency fined one exporter 1,480,785.44 pounds (about $1.9 million) in September for alleged illegal exports of military goods. It also fined an exporter 402,417.75 pounds (about $521,000) in August for alleged illegal exports of military goods, and it fined another exporter 37,743.34 pounds (about $48,000) that same month for alleged illegal exports of dual-use goods.

ECJU didn’t provide more information about the penalties.