Britain is stepping up export controls to combat circumvention of Russian sanctions

The UK government is introducing stricter controls on export licenses to block the supply of sanctioned goods to Russia via third countries. The new system will allow authorities to require manufacturers to obtain a license even for goods that previously did not require special permits, if there is suspicion that the destination country is aiding the aggressor. 

This was reported by The Guardian. According to Trade Policy Minister Chris Bryant, these measures will be significantly stricter than the current ones and will allow shipments to be stopped directly at the border.

The impetus for tightening the legislation was a scandal involving British equipment for carbon fiber production, which was planned to be exported to an Armenian firm linked to the Russian military sector. MP Liam Byrne drew the government’s attention to the fact that such equipment could be used to manufacture drones and missiles. Following the public outcry, Bryant ordered a review of the export license, and the relevant regulation on the new control rules will be presented as early as this Wednesday.

Under the updated rules, companies will be required to obtain a license from the Office of Trade Sanctions Implementation (OTSI) if government officials have concerns about the potential re-export of goods. Previously, the government could only notify exporters of its suspicions without having legal grounds to completely ban shipments. The new regime aims to weaken Russia’s military capabilities by restricting access to critical Western technologies.

In Poland, a company was fined 20 million zlotys (about $5.5 million) for violating EU sanctions by illegally exporting luxury cars to Russia.

Russia is stepping up its use of new tools to circumvent international sanctions by routing some financial transactions through cryptocurrency payment channels via African countries.