UK investigates 37 firms for suspected circumventing oil sanctions against Russia - BBC
Illustrative photo (Getty Images)
The UK government is investigating 37 British companies suspected of complicity in circumventing sanctions imposed on Russian oil, according to BBC.
In December 2022, G7 countries imposed an embargo on the import of Russian oil by sea and set a price cap of $60 per barrel. Firms associated with these countries are prohibited from engaging in the trade of Russian oil if the price exceeds the established limit.
Since December 2022, the UK Treasury has initiated investigations into 52 companies, 15 of which have already been closed. However, investigations are ongoing in 37 cases, and no one has been charged so far.
The names of the suspected firms are not disclosed, and the investigation is being conducted by the Office of Financial Sanctions Implementation (OFSI). In March 2024, it received additional funding of £50 million to strengthen control over the sanctions regime.
Experts criticize the lack of penalties for violations of sanctions. Louis Wilson, head of Fossil Fuel Investigations at Global Witness, expressed dissatisfaction with the fact that the British authorities have not yet brought anyone to justice and called for more decisive action.
The UK Treasury explains the delay by the complexity of such investigations, while Wilson notes that companies can easily provide documentation to prove their innocence.
The United States is also wary of tightening controls to avoid provoking an increase in oil prices, as a significant portion of Russian oil is already being sold at a noticeable discount.
Sanctions against Russia
The UK has imposed sanctions against Russia’s Radiological, Chemical, and Biological Defense Troops and their leader, Igor Kirillov, accusing them of using chemical weapons in Ukraine.
Additionally, sanctions have been imposed for the first time on the ships of Russia's "shadow fleet," which the UK believes helps circumvent Western oil restrictions. Eleven vessels, including Amur Bay and SKF Pechora, involved in transporting Russian oil to third countries, are under sanctions.
The UK has also established a new trade sanctions unit to strengthen control over the export of services to Russia.
