UK Probes 37 Firms Over Russian Oil Ties

The UK government is investigating 37 UK-linked businesses for potentially breaking Russian oil sanctions, though as yet no fines have been handed out.

Following the 2022 Russian invasion of Ukraine, tough financial sanctions have been put in place by the UK and other western countries to prevent the supply of equipment for the Russian war effort and restrict Russian trade. These prohibitions were created to stymie Putin’s war capabilities and were implemented in conjunction with the EU.

The sanctions include a cap on the price of Russian crude oil, brought into effect in December 2022, which prohibits British businesses from transporting or insuring Russian oil priced over $60 per barrel. This cap is designed to ensure that oil can keep flowing without Russia making large profits.

The BBC announced on Friday 11th October that 37 businesses with links to the UK have been accused of potentially breaching oil sanctions. The identities of these businesses remains unknown, though it is believed some are maritime insurance firms.

However, these sanctions have been met with some criticism. Recent figures suggest the Russian economy is growing, and as Russia continues to funnel billions into its defence budget, questions are being raised regarding the effectiveness of the UK’s financial sanctions.

Speaking to the BBC, Sir William Browder, head of the Global Magnitsky Justice Campaign, and longstanding critic of Russian President Vladimir Putin, said it was an “embarrassment” that not a single fine or prosecution had been handed out for those companies found potentially in breach.

Browder said the UK “was one of the most lax enforcers of these types of laws,” adding “The UK doesn’t do prosecutions well and I don’t know if that can be fixed overnight”.

It is a sentiment shared by the World Bank, which called the price cap “unenforceable”.

Using Freedom of Information laws, the BBC obtained data showing that the Treasury has opened 52 investigations into companies they believe have breached the price cap since its implementation. Of these 52, 15 had concluded, while 37 remain active. No fines have been handed out.

Louis Wilson, head of fossil fuel investigations at Global Witness, was astonished by the lack of fines handed out. When speaking to the BBC, he said that if the UK government “prevents British businesses from enabling Putin's profiteering, then I think you'll start to see others following that lead”.

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