UK is investigating dozens of firms suspected of breaching sanctions on Russian oil, introduced after Moscow’s invasion of Ukraine in 2022, reports BBC. Most of the accused businesses hail from the maritime insurance industry. The UK broadcaster also revealed that no fines were imposed so far on any suspected firm, despite 15 cases already being concluded. At least 37 files are still open and a total of 52 firms are being probed, the report revealed.
UK treasury said the investigation was expected to take time due to the ‘complexity’ of the cases.
Treasury’s Office of Financial Sanctions Implementation (OFSI) is leading the investigations against the accused businesses.
Anti-corruption organisation Global Witness has blasted UK for not taking action against the firms, saying the government must punish the businesses with “bold” measures.
UK firms breached Russia oil price cap?
Notably, Western nations introduced a price cap on Russian oil in 2022 to reduce Moscow’s energy profits without restricting the flow of crude in the international market.
The cap barred UK insurance firms from facilitating the transportation of Russian oil sold above $60 a barrel. Now, at least 52 companies have been accused of breaching that price cap.
Oil cap: Paper tiger?
Many experts are now saying that oil cap sanctions are nothing more than a paper tiger and remain ineffective.
BBC quoted Louis Wilson, the head of fossil fuel investigations at Global Witness, as saying that the oil cap was “a sort of paper tiger that is failing to crack down on rule breaking.”
“If the UK government prevents British businesses from enabling Putin’s profiteering, then I think you’ll start to see others following that lead,” he added.
According to conservative shadow foreign office minister Dame Harriett, “The oil price cap is being evaded by refining Russian oil in refineries based in third countries and then the oil is being exported into the UK.”
(With inputs from agencies)