Setting out new actions to stop President Putin evading sanctions to fund the conflict in Ukraine, Chancellor John Healey has called on the UK’s allies to step up their pressure on Russia.
The National Crime Agency (NCA) and the Government have issued the first ever nationwide alert against Russia’s A7 network to support the private sector in bearing down on sanctions evasion and ensure Russia pays the full cost of the sanctions.
A relatively new company, A7 claims to handle 20% of Russia's foreign trade settlements, totalling over $100 billion annually. Within its first year of operating, A7 claims to have settled more than $86 billion of transactions.
It has also been linked to Iranian state-associated actors and is believed to circumvent international financial and trade sanctions through a complex web of financial structures spanning multiple jurisdictions.
The Government will focus its attention on these third country enablers, particularly in Central Asia and West Africa, upon which A7 depends.
The Chancellor said: “We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere to hide. The UK and our allies must step up our international cooperation to expose sanctions evasion, and disrupt the financial networks fuelling Russia’s aggression.”
He intends to double the maximum fine available to the Office of Financial Sanctions Implementation (OFSI) from 50% to 100% of the value of a sanctions breach.
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