UK Steps Up Pressure on Russian Sanctions Evasion, Doubles Penalties
Britain Intensifies Efforts to Combat Russian Sanctions Evasion
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.
Government Statements and International Response
"We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere to hide," UK finance minister John Healey said in a statement released as he attends his first G20 in North Carolina.
European Reaction to G20 Summit
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 International Cooperation
"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.
Doubling of Sanctions Penalties
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 Financial Networks and Evasion Tactics
Nationwide Alert on Kremlin-Backed Networks
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.
Support for the Private Sector
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
The Russian embassy in London did not immediately respond to a request for comment on the government's latest actions.
Recent UK Sanctions and Measures
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.
The UK also announced new sanctions this month targeting Russian ships, banks and industrial companies.
(Reporting by Chris Thomas in Mexico City; Editing by Jamie Freed)