UK Doubles Sanctions Breach Penalties, Targets Russian Evasion Networks
Britain Increases Pressure on Russian Financial Networks
UK Treasury Announces Doubling of Sanctions Penalties
Aug 31 (Reuters) - Britain on Monday ramped up pressure on shadow financial systems underpinning Russia's war economy, doubling penalties for sanctions breaches, the UK Treasury said.
Finance Minister's Statement at G20 Summit
"We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere to hide," British finance minister John Healey said in a statement released as he attends his first G20 in North Carolina.
International Response and Cooperation
European Concerns Over Russia's Participation
European finance ministers and officials have bristled over the United States' move to invite Russia to participate in the summit as Moscow's war against Ukraine continues.
Calls for Enhanced Sanctions Enforcement
"The UK and our allies must step up our international cooperation to expose sanctions evasion, and disrupt the financial networks fuelling Russia's aggression," Healey said.
OFSI Maximum Fine Increased
He doubled the maximum fine available to the Office of Financial Sanctions Implementation (OFSI) to 100% from 50% of the value of a sanctions breach.
Targeting the Kremlin-Backed A7 Network
National Crime Agency's Nationwide Alert
The UK National Crime Agency also issued a nationwide alert targeting the Kremlin-backed A7 network, which the British government has said was used to route funds, finance procurement and exploit foreign banking systems to evade restrictions.
Supporting the Private Sector in Sanctions Enforcement
The alert aims to support the private sector in bearing down on sanctions evasion and ensure Russia pays the full cost of the sanctions, the UK Treasury said.
Russian Embassy's Response
Criticism of UK Measures
The Russian Embassy in London said Britain's latest measures targeting the A7 network constituted a continuation of its policy of "illegal unilateral sanctions and would not influence Moscow's course".
The embassy said such restrictions only destabilised international trade and financial stability and harmed the economies of the countries imposing them.
Russia would continue to defend its interests and economic actors through lawful means, the embassy added.
Previous and Additional UK Sanctions
Actions Against Cryptocurrency Platforms and Banks
Britain had in May targeted Russia-linked cryptocurrency platforms, banks and financial networks that it said were used to bypass sanctions, freezing their assets and barring UK firms from processing payments and holding correspondent banking ties.
New Sanctions on Russian Entities
The UK also announced new sanctions this month targeting Russian ships, banks and industrial companies.
(Reporting by Chris Thomas in Mexico City and Chandni Shah in Bengaluru; Editing by Jamie Freed)
