NTE 2024/29: compound settlement for breaches of Russian sanctions – August 2024
Published 4 November 2024
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This publication is available at https://www.gov.uk/government/publications/notice-to-exporters-202429-compound-settlement-for-breaches-of-russian-sanctions-august-2024/4aaf2dcb-e79b-407c-bd7b-a2ea4c245c7f
Introduction
HM Revenue and Customs (HMRC) has issued a compound settlement offer to a UK exporter of just over £58,000.00.
- August 2024 - £58,426.45 was paid relating to the export of goods in breach of The Russia (Sanctions) (EU Exit) Regulations 2019
Following Russia’s illegal invasion of Ukraine, the UK and our international partners have implemented the most severe package of sanctions ever imposed on a major economy, which has deprived the Russian state of over $400 billion in funding for its war machine.
Failure to comply with these sanctions is a serious offence and those who breach them may be subject to a range of enforcement actions, including large financial penalties or referral for criminal prosecution.
Since February 2022, HMRC has issued six compound settlements against UK companies that have breached the Russia sanctions regulations for a total of £1,363,129, including one in August 2023 for £1 million.
Russia needs Western technology to continue its illegal war against Ukraine. Preventing Russian access to this technology is a government priority, and we appreciate the private sector assistance.
Further guidance on the scope and operation of the UK’s overall sanctions regime is available here: Russia sanctions: guidance
Further information on assessing and addressing potential sanctions circumvention can be found here: NTE 2023/08: Russia sanctions – Trade sanctions circumvention and Preventing Russia Export Control and Sanctions Evasion.
If you have any indication that your products have ended up being supplied or diverted to Russia, please contact HMRC. If you discover you have imported or exported goods or transferred controlled technology without an appropriate export licence in place, you should consider reporting the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible. Details for making a disclosure can be found at Export controls: military goods, software and technology
Exporters should ensure that they comply with licensing requirements with guidance available on gov.uk.