UK extends Russia sanctions to metal, diamond and more energy firms

The UK has extended sanctions to 50 new Russian businesses and individuals, including electronic companies, metal and diamond businesses, oil traders and munitions manufacturers.

The UK announced the new sanctions yesterday as Ukraine marks the second anniversary of its country’s invasion by Russia.

The UK said new sanctions target more individuals and businesses considered to be sustaining Vladimir Putin’s war and in particular his armoury, but also revenue sources key to Russia’s economy.

Foreign secretary David Cameron said: “Today’s package forms part of wider UK action to restrict Putin’s war revenue streams and clamp down on his repeated attempts to evade western sanctions.

“We are preparing to bolster our existing powers to target malign Russian shipping activity and individual ‘shadow fleet’ vessels used by Russia to soften the blow of oil-related sanctions imposed by the UK alongside G7 partners.”

New sanction targets on the UK’s list cover Russian importers and manufacturers of machine tools used to produce defence systems and components for missiles and tank engines, as well as companies linked to manufacturing munitions. It also extends to oil trader Niels Troost and his company Paramount Energy & Commodities, which facilitate Russian oil trade.

Fractal Marine DMCC, Beks Ship Management and Active Shipping, which the UK said operates in the Russian energy sector as part of Putin’s shadow fleet, have also been sanctioned. So to have a couple of Russian diamond companies and the CEO of state-owned diamond producer Alrosa, which holds a 30% share in the global diamond market. Five senior executives and owners of Russia’s major producers of copper, zinc and steel are also on the sanctions list.

The UK government also launched its first sanction strategy, setting out how it will work with allies to address changing threats and maximise its impact.

Commenting on the new sanctions, Septimus Knox, director of disputes and investigations at intelligence experts S-RM, explained the impact of the action: “This round of sanctions indicates the UK government’s desire not only to crack down on companies and individuals that contribute directly to the war, but also to put sand in the gears of the sectors that finance it.

“This recent set of sanctions also reaffirms the UK’s commitment to the oil price cap. It is perceived as the most effective way to restrict the revenues Russia can accrue from oil sales without entirely embargoing the Russian oil trade, which is vital to many European economies. Clearly the most egregious violators of the price cap have been targeted first, but the British government will hope that these sanctions have put other players on notice.”

Knox added: “As of yet, Russia’s response is not clear. It is likely to transfer tactics from its oil trade into the diamond and metals trade etc. Thus, these sanctions will not curtail Russia’s involvement in these sectors, but they will certainly make the cost of doing business much higher.”