Chancellor unveils new actions to stop Russia’s evasion of economic sanctions
“We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere to hide,” Mr Healey said.
John Healey has announced new actions to clamp down on Russia’s evasion of economic sanctions as he called on international allies to help “disrupt the financial networks fuelling Russia’s aggression”.
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The new Chancellor used his first international meetings with counterparts at the G7 in North Carolina to build an international coalition to target covert Russian networks funding the war in Ukraine.
The primary action announced by Mr Healey targets the so-called “A7 network”, which the Foreign Office said was being used by Russia to evade existing restrictions and channel funds to fuel the conflict.
On Monday, the National Crime Agency (NCA) and the Government issued the first-ever nationwide alert against A7 to support the private sector in bearing down on sanctions evasion.
According to the Government, the alert aims to disrupt Kremlin-backed networks that have sought to escape economic sanctions through a web of financial structures spanning multiple jurisdictions.
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It also aims to prevent Russian attempts to regain access to the UK’s financial systems.
It was also announced that Mr Healey would double the maximum fine available to the Office for Financial Sanctions Implementation from 50 per cent to 100 per cent of the value of a sanctions breach.
“We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere to hide,” Mr Healey said.
“The UK and our allies must step up our international cooperation to expose sanctions evasion, and disrupt the financial networks fuelling Russia’s aggression.
“Our commitment to stand with the Ukrainian people is unshakeable. We will bear down on those propping up Putin’s war as we push to secure a just and lasting peace.”
Rachael Herbert, director of the National Economic Crime Centre at the NCA, said: “The National Crime Agency and the National Economic Crime Centre are committed to targeting the nexus between organised crime and sanctions evasion.
“Last year, our Operation Destabilise targeted and disrupted a major Russian-speaking professional money laundering network, making it harder for them to operate and degrading the threat they posed.
“And through our close working with the financial sector in our public private partnership initiatives, as well as with the Office of Financial Sanctions Implementation, this alert will continue to ensure the industry is aware of the mechanisms used to attempt to evade sanctions.”
It comes after Mr Healey earlier requested international allies to “step up” their co-operation in response to the Middle East crisis and the cost of living.
He urged a need to “step up international co-operation” to deal with a “number of challenges” including the Middle East, energy prices, cost of living and growth.
“Britain faces these global pressures from a position of relative strength, the fastest growth in the G7 advanced nations in the first half of this year, the deficit being cut faster than in any other G7 country,” he said.
“But no country can face these pressures alone. And these shocks are being felt worldwide. They’ve been felt in people’s pockets, in their weekly shops, filling up their cars.
“And so I’m here to work with international partner nations to deepen our economic resilience, to deliver good growth and also to give families and businesses just a bit of breathing space.”
Mr Healey held meetings with Canadian finance minister Francois-Philippe Champagne, US treasury secretary Scott Bessent and managing director of the International Monetary Fund Kristalina Georgieva, among others.