Pursuant to the answer provided on 24 April 2024 to Question 22821, HM Revenue and Customs is responsible for enforcing and investigating export controls on strategic goods and sanctions and investigating potential breaches of those controls.

HM Revenue and Customs’ enforcement outcomes will be published in the UK Strategic Export Controls Annual Report 2023. This will be available on the gov.uk website. This will include collated Compound Settlement details and Prosecutions for this period.

HM Revenue and Customs does not comment on operational enforcement matters pertaining to specific import or export scenarios.

HMRC is responsible for enforcing and monitoring controls on strategic exports and sanctioned goods and investigating potential breaches of those controls.

There are extensive trade sanctions measures in place and the UK Government monitors the effectiveness of all its sanctions, including those made through the Russia (Sanctions) (EU Exit) Regulations 2019.

All sanctions designations, legislation and structures are kept under constant review to ensure that they are as effective as possible in meeting the UK’s foreign policy priorities. This means coming down hard on sanctions evaders; closing loopholes; and working with our international partners.

HM Revenue and Customs existing enforcement mechanisms are robust and act as a deterrent against those considering circumventing sanctions measures. We take breaches of sanctions seriously and undertake a preliminary investigation into all credible allegations of an offence. Non-compliance with UK sanctions is a serious offence and punishable through large financial penalties or criminal prosecution.

HMRC has been enforcing sanctions against Russia since 2014. Since increased sanctions were announced on 24 February 2022, HMRC has implemented a number of measures which aim to prevent the exportation and importation of restricted goods and respond to breaches of those sanctions.

This includes increased border checks in collaboration with Border Force, trader awareness products and where appropriate the criminal investigation of any breaches, with a view to achieving an enforcement outcome such as a fine or prosecution.

HMRC is conducting multiple ongoing investigations into credible reports of sanctions and export control offences, including controls on the supply of defence equipment to Russia and other countries. These investigations can take a year or more to conclude. The department does not comment on individual investigations.

Since February 2022, HMRC has fined five UK companies through the Compound Settlement scheme for breaches of the UK’s trade sanctions on Russia. Three of these fines have been published in the Notice To Exporters and the other two will be published soon: https://www.gov.uk/government/collections/notices-to-exporters#notices-to-exporters-2023.

The UK has prohibited the export to Russia of thousands of products, including military and dual use items. Our trade with Russia is down over 96% on pre-invasion levels.

HMRC enforces customs controls on Strategic Exports and sanctioned goods, including arms exports. The department takes breaches of sanctions very seriously and investigates all credible allegations of sanctions offences within its customs remit.

NTE 2023/17: a compound settlement - GOV.UK (www.gov.uk)

Due to the confidentiality element of Compound Settlements, HMRC is unable to disclose details of the types of goods or companies involved.

The Government takes all credible allegations of breaches of sanctions and export controls seriously, and the enforcement agencies will take further action if appropriate. The UK has a number of sanctions in place against Iran including against Iranian UAV manufacturers and related military individuals and executives.

Officials in my department have been leading a review of the allegations made in the recent press articles. They are working at pace with others in the Ministry of Defence, Foreign, Commonwealth and Development Office, HM Revenue & Customs (HMRC), the Department for Science, Innovation and Technology, and the Office of Financial Sanctions Implementation (OFSI) to establish the facts and assess if any export controls (Military, Dual-Use, UK National) or relevant sanctions regulations may have been contravened.

The outcome of this review will determine what further action may be needed. If there has been a potential breach of the sanctions or export controls, HMRC and/or OFSI will consider appropriate enforcement action.

The UK has wholly or partially sanctioned £20 billion of UK-Russia goods trade – 96% of 2021 values. Compared to before the invasion, UK goods imports from Russia have fallen by 99.1%, and goods exports to Russia have fallen by 80%. Additional sanctions on services trade will further erode Russia’s ability to keep pace with Western countries.

Sanctions are starving Russia of advanced technologies and degrading their military capabilities, especially as many high-precision weapons rely on Western components.

Over £20bn of UK-Russia trade is now under sanctions, with a 99.1% reduction in UK goods imports from Russia compared to before the invasion.

The Government is committed to ensuring that third countries are not used by Russia to evade sanctions and takes such allegations seriously. We are working together with our international partners to stop any attempts to circumvent sanctions measures through third party countries. Anyone who directly or indirectly imports prohibited Russian iron or steel products – or facilitates its shipment to other countries from Russia – faces a heavy fine or imprisonment.

Between 14 April 2022 and 30 September 2022, the Export Control Joint Unit (ECJU) has not issued licences by exception for the export of luxury fashion items or cars for these specific companies to Russia. This is the latest period published in the Official Export Control Statistics.

Information on Russia Sanctions relating to luxury goods (as specified in Schedule 3A to the Regulations) can be found here:

https://www.gov.uk/government/publications/russia-sanctions-guidance/russia-sanctions-guidance

The Government takes the enforcement of sanctions very seriously, and any UK person or company anywhere in the world that is selling or exporting sanctioned goods to Russia, directly or indirectly, may be in breach of sanctions law and potentially faces a heavy fine or imprisonment.

Between 14 April 2022 and 30 September 2022, the Export Control Joint Unit (ECJU) has not issued licences by exception for the export of luxury fashion items or cars for these specific companies to Russia. This is the latest period published in the Official Export Control Statistics.

Information on Russia Sanctions relating to luxury goods (as specified in Schedule 3A to the Regulations) can be found here:

https://www.gov.uk/government/publications/russia-sanctions-guidance/russia-sanctions-guidance

The Government takes the enforcement of sanctions very seriously, and any UK person or company anywhere in the world that is selling or exporting sanctioned goods to Russia, directly or indirectly, may be in breach of sanctions law and potentially faces a heavy fine or imprisonment.

Between 14 April 2022 and 30 September 2022, the Export Control Joint Unit (ECJU) has not issued licences by exception for the export of luxury fashion items or cars for these specific companies to Russia. This is the latest period published in the Official Export Control Statistics.

Information on Russia Sanctions relating to luxury goods (as specified in Schedule 3A to the Regulations) can be found here:

https://www.gov.uk/government/publications/russia-sanctions-guidance/russia-sanctions-guidance

The Government takes the enforcement of sanctions very seriously, and any UK person or company anywhere in the world that is selling or exporting sanctioned goods to Russia, directly or indirectly, may be in breach of sanctions law and potentially faces a heavy fine or imprisonment.

We have been clear that we would speak with Chelsea to understand what is needed to allow upcoming games to be played to minimise the impact on the Leagues, other competitions, the wider football pyramid and fans. These conversations are ongoing. The continuance of activities at Stamford Bridge not covered by the licence would be for the stadium management to confirm.

Russia’s assault on Ukraine is an unprovoked, premeditated and barbaric attack against a sovereign democratic state. President Putin must not be allowed to exploit major sporting and cultural events on the world stage to seek to legitimise his regime’s invasion.

In response, the UK Government, alongside 36 other nations, issued a joint statement calling on international sporting federations to endorse the principles that:

• Russia and Belarus should not be permitted to host, bid for or be awarded any international sporting events.

• Individual athletes selected by Russia and Belarus, administrators and teams representing the Russian or Belarusian state should be banned from competing in other countries, including those representing bodies, cities or brands that are effectively representing Russia or Belarus, such as major football clubs.

• Wherever possible, appropriate actions should be taken to limit sponsorship and other financial support from entities with links to the Russian or Belarusian states.

The issue of Russian or Belarusian individual sports persons participating in a truly neutral capacity - in the UK and overseas - adds further complexity, and our position will have the greatest impact if it is taken in line with other nations.

We are engaging with national governing bodies, including the All England Lawn Tennis Club, and international counterparts in order to reach an agreed position that can be implemented as consistently as possible.

No one in the UK should be doing business with any institution which knowingly acquires cultural objects looted from Ukraine. International and domestic UK law includes a range of provisions, including criminal offences, to protect cultural objects from unlawful removal and illicit trade. Art market businesses and museums in the UK subscribe to codes of conduct which set out their responsibilities and procedures for ensuring the lawful provenance of the cultural objects which they handle. The Government expects anyone dealing in cultural objects to ensure that those objects have not been looted from any country, including Ukraine, and that the businesses and institutions they are dealing with are acting lawfully.

The Government strongly condemns Russia’s unprovoked, flagrant actions. Russia must not be allowed to exploit major sporting and cultural events on the world stage to seek to legitimise its illegal invasion of Ukraine.

That is why we brought together an international coalition to see what more we could do to increase the pressure on Putin’s regime, and issued a joint statement with 36 other nations calling on international sporting federations to endorse the principles that:

• Russia and Belarus should not be permitted to host, bid for or be awarded any international sporting events.

• Individual athletes selected by Russia and Belarus, administrators and teams representing the Russian or Belarusian state should be banned from competing in other countries, including those representing bodies, cities or brands that are effectively representing Russia or Belarus, such as major football clubs.

• Wherever possible, appropriate actions should be taken to limit sponsorship and other financial support from entities with links to the Russian or Belarusian states.

The full statement is available here.

The issue of Russian or Belarussian individual sports persons participating in a truly neutral capacity - in the UK and overseas - adds further complexity, and our position will have the greatest impact if it is taken in line with other nations. We are engaging with national governing bodies, including the All England Lawn Tennis Club, and international counterparts in order to reach an agreed position that can be implemented as consistently as possible.