UK Announces Record Fine of Exporter for Russia Sanctions Breach
The U.K. fined a British exporter about 1.16 million pounds (about $1.52 million) for making goods available to Russia, the country’s revenue and customs agency announced Nov. 3. The penalty is the largest settlement the U.K. has ever reached with a business for violating Russia sanctions.
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The fine, paid to the U.K. in May, came after the unnamed U.K. exporter made “goods available to persons connected to Russia.” The U.K. didn't provide specific details about the case, but it said British companies risk violating sanctions if they export controlled goods to Russian companies operating in third countries.
“UK companies exporting sanctioned goods to Central Asia and other regions where Russian companies have branches and operations should check whether the consignee, end-user or any other party receiving or taking control of the goods is a Russian-owned company,” it said.
The U.K. added that its regulations restrict British exporters from sending goods, technology or software to “a person connected with Russia.” That can include a person who's “ordinarily resident” or located in Russia, a company that's “incorporated or constituted under the law of Russia,” or a company that's "domiciled" in Russia. “The key point to note in this context is that this definition includes Russian incorporated companies operating anywhere in the world.”
It also said U.K. companies can’t claim “ignorance of sanctions” as a defense. It urged companies to sign up for U.K. sanctions email alerts to be informed of new sanctions measures before they take effect. “Businesses should review their trading relationships in light of new sanctions and seek professional legal advice on current and prospective trade if they are unsure whether it complies with sanctions.”