The UK government has imposed a range of sanctions measures, including trade and financial sanctions, under The Russia (Sanctions) (EU Exit) Regulations 2019 (“the Russia Sanctionssanctions Regulations”).regulations”).

The purposes of the Russia Sanctionssanctions Regulationsregulations are to encourage Russia to cease actions:

• destabilising Ukraine, or
• undermining or threatening the territorial integrity, sovereignty or independence of Ukraine

Find detailed guidance on UK sanctions relating to Russia.

UK businesses are responsible for thetheir decisionown commercial decisions on whether to trade with Russia. Businesses must ensure they are compliant with UK sanctions and may wish to seek legal advice if they wish to trade with Russia.

BusinessIn addition, businesses should expect a highhighly unpredictable trading environment as a result of:

• designations of individuals and entities under the Russia Sanctionssanctions Regulationsregulations by the UK
• retaliatory measures by Russia

The Russia Sanctionssanctions Regulationsregulations affectsaffect several aspects of trade with Russia, including:

• the movement of goods to and from Russia
• the settling of financial transactions with suppliers and customers
• trading with certain businesses and individuals

Businesses should seek legal advice if they plan to continue trading with Russia.

Trade sanctions

The following sections provide an outline of the key restrictions and exemptions, which should be read alongside other guidance on UK sanctions relating to Russia.

Sanctions applicability

UK trade sanctions apply to all persons within the territory and territorial sea of the UK and to all UK persons, wherever they are in the world.

This means:

• all individuals and legal entities who are within, or undertake activities within, the UK’s territory must comply with UK financial sanctions that are in force
• all UK nationals and legal entities established under UK law, including their branches, must also comply with UK financial sanctions that are in force, irrespective of where their activities take place

Breaches of sanctions measures under the Russia Sanctionssanctions Regulationsregulations isare a criminal offence.

EU sanctions regulations also apply where they relate to trade in goods between the EU and third countries.

The regulation defines “third‘third country”country’ as a country that is not the UK, the Isle of Man or Russia.

All UK sanctions apply in Northern Ireland. EU sanctions regulations also apply where they relate to trade in goods between the EU and third countries as stipulated by Annex 2 of the Northern Ireland Protocol, in which traders in Northern Ireland must adhere to:

“Restrictive measures in force based on Article 215 TFEU, insofar as they relate to trade in goods between the Union and third countries.”

Trade sanctions in the Russia Sanctions Regulations

Trade sanctions are set out in Part 5 of The Russia (Sanctions) (EU Exit) Regulations 2019 (“the regulations”).

Check the regulations for information on prohibited commodities, products and services.

The regulations set out the restrictions currently imposed, while the schedules provide definitions of the prohibited goods.

Example: If Chapter 5 of Part 5 sets out the prohibitions for the exporting of infrastructure-related goods to non-government controlled Ukrainian territory, you will need to refer to its relevant schedule (Part 3, Schedule 3) for the definitions of the goods.

The Regulations also cover a range of other items such as transfer of technology, providing technical assistance, brokering services and financial services.

For further guidance, check the statutory guidance on sanctions against Russia.

Definitions and commodity codes

The Russia Sanctionssanctions Regulationsregulations impose trade prohibitions on (with links to definitions and HS codes where available):

• military goods and military technology (as specified in Schedule 2 to the Export Control Order 2008 on legislation.gov.uk)
• anything which falls within Chapter 93 of the Goods Classification Table, other than military goods
• provision of technical assistance, armed personnel, financial services or funds, or associated brokering services where such provision enables or facilitates the conduct of certain military activities
• defence and security goods and defence and security technology (as specified in Schedule 3C to the Regulations on legislation.gov.uk)
• dual-use goods and technology (as specified in Annex I to Council Regulation 428/2009 on legislation.gov.uk, as retained by the European Union (Withdrawal) Act 2018 (‘the Dual-Use Regulation’))
• special materials and related equipment and materials processing (as specified in Parts 1A and 1B of Schedule 2A to the regulations on legislation.gov.uk)
• critical-industry goods and technology (as specified in Schedule 2A to the Regulations on legislation.gov.uk)
• quantum computing and advanced materials goods and technology (as specified in Schedule 2E to the Regulations on legislation.gov.uk)
• aviation and space goods and technology (as specified in Schedule 2C to the Regulations on legislation.gov.uk)
• jet fuel and fuel additives (as specified in Part 8 of Schedule 2A to the Regulations on legislation.gov.uk)
• maritime goods and maritime technology (defined by reference to Chapter 4 (Navigation Equipment) and Chapter 5 (Radio-Communication Equipment) of Annex 1 of Merchant Shipping Notice 1874(a))
• infrastructure-related goods (as specified in Part 3 of Schedule 3 to the Regulations on legislation.gov.uk)
• energy-related goods (as specified in Part 2 of Schedule 3 to the Regulations on legislation.gov.uk) and energy-related services
• oil refining goods and technology (as specified in Schedule 2D to the Regulations on legislation.gov.uk)
• luxury goods (as specified in Schedule 3A to the Regulations on legislation.gov.uk)
• G7 dependency and further goods (as specified in Schedule 3E to the Regulations on legislation.gov.uk)
• goods originating in non-government controlled Ukrainian territory
• iron and steel products (as specified in Schedule 3B to the Regulations on legislation.gov.uk) and associated ancillary services
• oil and oil products (as specified in Schedule 3F to the Regulations on legislation.gov.uk)
• coal and coal products (as specified in Schedule 3H to the Regulations on legislation.gov.uk)
• gold and products related to gold (as specified in Schedule 3G to the Regulations on legislation.gov.uk)
• banknotes denominated in sterling and any official currency of the EU
• goods which generate significant revenues for Russia (as specified in Schedule 3D to the Regulations on legislation.gov.uk)
• provision of technical assistance, armed personnel, financial services or funds, or associated brokering services where such provision enables or facilitates the conduct of certain military activities
• services relating to a relevant infrastructure sector in non-government controlled Ukrainian territory
• services relating to tourism in non-government controlled Ukrainian territory
• internet services
• professional and business services (as specified in Chapter 6B to the Regulations on legislation.gov.uk)

Trading via a third country

Current prohibitions apply to:

• exports of certain goods or technology to Russia or to non-government controlled Ukrainian territory
• exports of certain goods or technology that are for use in Russia or to non-government controlled Ukrainian territory
• supply and delivery of certain goods or technology from a third country to Russia or to non-government controlled Ukrainian territory or from Russia to a third country
• transfer of certain technology to Russia or a person connected with Russia or transfer from Russia to persons or place outside the UK
• making certain goods or technology available for use in Russia or to a person connected with Russia or use in non-government controlled Ukrainian territory or to a person connected with non-government controlled Ukrainian territory
• acquiring certain goods or technology which originate in Russia or which are located in Russia or from a person connected with Russia
• providing technical assistance, brokering services or financial services and funds related to certain specified goods or technology for use in Russia, or person connected with Russia, or for use in non-government controlled Ukrainian territory or to persons connected with non-government controlled Ukrainian territory
• providing certain services such as services insurance or reinsurance services for specified goods or technology or certain specified services necessary for a “relevant oil exploration or production project” in Russia
• providing certain services such as services relating to certain specified infrastructure sectors or services relating to tourism in non-government controlled Ukrainian territory
• imports that are consigned from Russia
• imports that originated in Russia

For exports, this means that the prohibition may apply even if the immediate destination is not Russia.

There are import prohibitions on certain goods that have originated from Russia and all goods from non-government controlled Ukrainian territory. These prohibitions are applicable even if the immediate place the goods were shipped from was not from Russia or non-government controlled Ukrainian territory.

See the Importimport control licensing section for more information.

For both exports and imports, the same applies to goods or services to and originating from Ukrainian territory that is not controlled by Ukraine’s government.

‘Non-government controlled Ukrainian territory’ is defined in the Regulations as ‘Crimea and non-government controlled areas of the Donetsk and Luhansk oblasts’.

Professional and business services to a person connected with Russia

Regulation 54C prohibits a legal or natural person from providing, directly or indirectly, accounting, business and management consulting, and public relations services to a ‘person connected with Russia’. These services (‘covered services’) are defined in regulation 54B, while a ‘person connected with Russia’ is defined in regulation 21. The prohibitions in regulation 54C are subject to exceptions and licences.

Professionals and businesses connected with Russia are advised to read the guidance on Russia sanctions.

Exceptions to trade sanctions and licences to carry out prohibited activities

The Regulations set out exceptions to some of the trade restrictions which apply within certain defined circumstances. These are set out in Part 7 of the Regulations. An exception applies automatically, and does not require you to obtain a licence issued in accordance with the Regulations.

Licences may also be issued for certain trade activities that would otherwise be prohibited by the Regulations. Circumstances for which a licence may be granted for certain trade activities are listed in Section 3.3 of the Russia sanctions guidance.

Generally, there may be a case for licence applications to be granted under ‘prior obligation’ grounds if goods or services have already been provided.

Under prior obligation grounds, the obligation must:

• have arisen before the designation date
• not relate to trade provisions (specified in the Regulations)
• not result in funds or economic resources being made available (directly or indirectly) to the designated person

A licence may also be granted for goods, technology or services required for the delivery of humanitarian assistance activity.

Trade sanctions licensing and checking the end-use of goods

OTSI is responsible for issuing licences for certain sanctioned activity - specifically the provision of standalone services, including professional and business services.  services, goods not subject to strategic export controls, and associated ancillary services (services related to the export of tangible goods). 

Sanctions licensing for the export of goods andsubject theto provisionstrategic ofexport ancillarycontrols servicesand (services related to the exportprovision of tangiblerelated goods)ancillary services remains the responsibility of the Export Control Joint Unit (ECJU). 

We have produced guidance where you can check which trade licence you need. This will guide you to the application page for the relevant licence type.

Export control licensing

Exporters should check the ultimate end-use of goods. YouIf shouldyou applybelieve foryour agoods licenceare viaat SPIRErisk orof contactdiversion ECJUto ifa sanctioned destination, you knowshould orconsider thinknot carrying out the itemstransaction. mayYou beare usedstrongly inencouraged Russiato orundertake non-governmentfurther controlleddue Ukrainiandiligence territory.before proceeding and you may also wish to seek legal advice.

Refer and subscribe to notices to exporters for the latest export controls relating to Russia and non-government controlled Ukrainian territory.

Go to regulation 21 of the Regulations on legislation.gov.uk for definitions on controlled goods.

For other sanctioned goods not subject to strategic export controls, OTSI is not currently accepting advance licence applications for Sanctions End-Use Controls but will keep this under review. You should wait until you are informed before submitting a licence application. Read more about the Sanctions End-Use Controls.

Import control licensing

Importers should check the original place goods were consigned from. Contact the Import LicensingControls Branchand Sanctions team if you think the items may have originated in or have been consigned from Russia or non-government controlled Ukrainian territory.

Refer and subscribe to the notice to importers for the latest import controls relating to Russia, which should be read alongside the statutory guidance.

You’ll need to apply for an import licence if both of the following apply:

• you are looking to import prohibited goods
• an exception does not apply

If you’re a new user, you will need to create an account and submit an importer access request.

Then contact importsanctions@businessandtrade.gov.uk with details of your proposed import for further instruction. We will consider each application on a case-by-case basis to determine whether granting a licence would be consistent with the stated purposes of the sanctions regime and any UN or other relevant international law obligations.

Tariffs on Russian and Belarusian goods

The UK has increased import tariffs by 35%35 percent on a number of goods from Russia and Belarus. The 35%35 percent additional duty will apply on top of existing tariff measures. The tariff increase applies to goods originating in Russia and Belarus.

Products affected are those that are important to the Russian economy and include iconic Russian goods such as vodka and fur skin clothing.

The tariffs on Belarus are in line with the evolving sanctions positions, and will prevent the circumvention of Russian-origin goods.

The government will continue to keep these tariffs under review as the situation in Ukraine develops.

See the Reference Documents for Customs (Additional Duty) (Russia and Belarus) Regulations 2022 to find out what additional duties apply on certain goods originating from Russia and Belarus. The document contains commodities codes.

Rules of origin

The origin of goods is based on where they have been grown, produced, or manufactured, and may not be the country where they have been shipped or brought from.

Use the guidance to determine the country of origin of goods.

Goods originating in other countries and then shipped through Russia and Belarus will not receive a higher tariff.

Financial sanctions

The regulations impose financial sanctions on designated persons.

Financial sanctions are specific to each designated person. However, in general, they comprehend a prohibition on:

• dealing with funds or economic resources (non-monetary assets, such as property or vehicles) owned, held or controlled by a designated person
• making funds and economic resources available to or for the benefit of a designated person, either directly or indirectly

Applicability

You should ensure that you consider the above financial sanctions. This might impact your ability to get paid.

UK financial sanctions apply to all persons within the territory and territorial sea of the UK and to all UK persons, wherever they are in the world.

This means:

• all individuals and legal entities who are within, or undertake activities within, the UK’s territory must comply with UK financial sanctions that are in force
• all UK nationals and legal entities established under UK law, including their branches, must also comply with UK financial sanctions that are in force, irrespective of where their activities take place

Exceptions to financial sanctions

There are certain exceptions that apply to financial payments under the Russia (Sanctions) (EU Exit) Regulations 2019. These are listed in the regulations and also detailed in guidance published by the Office of Financial Sanctions Implementation (OFSI).

OFSI has issued several general licences under the Russia regulations that allow multiple parties to undertake an activity that would otherwise be prohibited.

For other activities, you may be able to apply for a specific licence from OFSI under certain conditions. Please note that you may need a trade sanctions licence from the Department for Business and Trade (DBT) as well as a licence from OFSI in some circumstances.

Getting paid

You will need to check first whether your Russian agents, partners or suppliers are subject to current financial sanctions. Even if they are not, current financial sanctions could impact your ability to make or receive payment via a Russian bank should they be subject to any financial sanctions.

As a part of your financial sanctions due diligence when importing or exporting, you should consider:

• who and where the goods or services are coming from or going to (it is possible that financial sanctions such as an asset freeze may apply to one of the parties or to the financial aspects of the trade)
• who is shipping the goods, and whether they are being shipped on a sanctioned vessel
• whether a designated person is based in a different country to the one you are operating in, but is still subject to financial sanctions in that country

You should also consider if individuals or organisations are ‘owned’ or ‘controlled’ either directly or indirectly by designated persons.

The financial measures extend to entities, owned or controlled by designated persons within the meaning of regulation 7 of the Russia Sanctionssanctions Regulationregulation unless specific activities are covered by an exception or General Licence; or if a licence is granted under the usual process.

You can use the OFSIUK ConsolidatedSanctions List Searchsearch tool to search for Russian banks to see if they are affected by sanctions. Some Russian companies are also listed on a separate list of financial and investment restrictions. This companies have restrictions on specified activities such as dealing with transferable securities or money-market instruments and granting or entering into arrangements to grant loans or credit.

Transport sanctions

The regulations impose transport prohibitions relating to aircraft and shipping.

Go to the relevant sections of Russia sanctions: guidance for more detailed information including exceptions. A brief outline of the regulations can be found below.

Shipping sanctions

The following provides an outline of the shipping sanctions in the Russia Sanctionssanctions Regulations.regulations.

The sanctions:

• prohibit Russian ships, and other ships specified by the Secretary of State, from entering UK ports
• confer powers on the Secretary of State and harbour authorities to issue port barring directions to the master or pilot of a specified ship
• provide the Secretary of State with a power to control the movement of Russian ships or specified ships by requiring them to leave or enter specified ports, proceed to a specified place or remain where they are
• prohibit the registration of ships owned, controlled, chartered or operated by designated persons or persons connected with Russia on the UK Ship Register and confer powers on the Secretary of State to direct the UK Ship Registrar to terminate the registration of such ships

Aircraft sanctions

The Russia Sanctionssanctions Regulations,regulations, in outline, prohibit a Russian aircraft which is owned, chartered or operated by persons connected with Russia or designated persons from overflying the UK or landing in the UK.

Sanctions relating to Belarus

The UK has designated various individuals and entities under the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019, which can be found on legislation.gov.uk.

Check the Republic of Belarus sanctions: guidance for detailed information in relation to the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019.

You can use the OFSIUK ConsolidatedSanctions List Searchsearch tool to search for individuals or entities to see if they are designated under the Republic of Belarus (Sanctions) (EU Exit) Regulations 2019.