Britain strengthens sanctions regime against Russia with new trade unit

Britain on Thursday launched a trade sanctions unit with new powers to penalize companies that do not comply with restrictions on exporting services to Russia.

Britain has announced sanctions on trade with Russia worth more than 20 billion pounds ($26 billion) since it invaded Ukraine in 2022 and said the Office for Trade Sanctions Enforcement would support companies to comply with the sanctions.

“This new unit will help ensure that businesses comply with trade sanctions and take decisive enforcement action where necessary so that, together with business, we can continue to put maximum pressure on the Putin regime,” said the Secretary of State for business and commerce, Jonathan Reynolds, in a statement.

The government said OTSI would have powers to fine companies that breached the sanctions and would also be empowered to publicize them – essentially “naming and discrediting” the firms involved.

It will focus on enforcing sanctions on exports of professional and business services, with the export and import of goods remaining the responsibility of existing establishments.

The unit will also have powers to investigate British nationals who have broken sanctions rules while operating in third countries, a new power under the UK’s trade sanctions enforcement regime.

($1 = £0.7647)

(Reporting by Alistair Smout; Editing by Alison Williams)

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