May 22, 2023

UK announces new wave of Russia-related sanctions and imposes new import bans

On May 19, 2023, the UK imposed a new wave of sanctions designating 86 additional individuals and entities with ties to Russia’s energy, metal, defense, transport and financial sectors – sectors that Russian President Putin has attempted to use to fund his war with Ukraine.  The UK reports that the designations were imposed shortly after UK Prime Minister Rishi Sunak announced new import bans on Russian diamonds, metals such as Russian-origin copper, aluminium and nickel, and the military-industrial complex, on the first day of the G7 Summit in Japan.  On May 19, 2023, the G7 leaders made several commitments to facilitate the end of Russia’s war with Ukraine, including commitments to impose further sanctions that target sanctions evasion efforts and key sectors of the Russian economy used to support the war; to hold Russia accountable for violating international law; to support the recovery and reconstruction of Ukraine; and to ensure that Russia pays for Ukraine’s long-term reconstruction.  To this end, Foreign Secretary James Cleverly also confirmed that, consistent with UK laws, Russia’s sovereign assets in UK jurisdictions will remain immobilized until Russia agrees to pay for the damages caused in Ukraine.

Among the new designees is the Pawell Shipping Co, LLP, the State Grain Corporation (GZO), and their director Nikia Busel for their roles in the alleged theft and resale of Ukrainian grain; 9 companies connected to Rosatom, a Russian state-owned nuclear power company that has supported Putin’s military efforts, that are producing advanced material and technology, including lasers; and several companies operating in the Russian energy sector and arms shipping.  The UK also designated 5 financial institutions, including Joint Stock Company Dom RF that reportedly acts at the behest of the Russian government, and the Metallurgical Investment Bank that facilitates industrial exports from Russia.

All of these designations were imposed under The Russia (Sanctions) (EU Exit) Regulation 2019 that targets persons involved in destabilizing Ukraine or undermining or threatening its territorial integrity, sovereignty or independence or obtained a benefit from supporting the Government of Russia.  As a result, all 86 designees are now subject to asset freezes and trust services sanctions in the UK.

UK Governemnt Press Release | UK Governent Press Release – Prime Minister Rishi Sumak | OFSI Financial Sanctions Notice – Russia