Industry and Economic Security MinisterNusrat Ghani announces new Office of Trade Sanctions Implementation to strengthen enforcement and clamp down on companies dodging Russian sanctions.
Companies who are found to be dodging strict trade sanctions, including those imposed since the war in Ukraine, will face tougher penalties with the creation of a new Office of Trade Sanctions Implementation (OTSI).
The OTSI will be responsible for the civil enforcement of trade sanctions, including those against Russia. The unit will help businesses comply with sanctions and investigate potential breaches, issuing civil penalties and referring cases to HMRC for criminal enforcement where needed.
Its remit will involve activity by companies who may be avoiding sanctions by sending products through other countries.
The news comes as the UK is expected to announce fresh sanctions targeting the latest items Ukraine has found on the battlefield such as machine parts and chemicals, as well as products that raise revenue to fund Putin’s war machine.
Without international sanctions, we estimate Russia would have over $400bn more to fund the war, enough to fund the invasion for a further four years. We are hitting Russia where it hurts and starving Putin of the resources he needs to fund his illegal war on Ukraine.
Sanctions Minister Anne-Marie Trevelyan
OTSI will launch in early 2024 once the new legal requirements are in place and will reinforce existing work the government does to ensure UK trade sanctions are adhered to.
