- Today, Putin announced the illegal annexation of Ukraine’s Donetsk, Luhansk, Kherson and Zaporizhia regions after mock referendums
- Under the new sanctions, Russia will lose access to key Western services on which Russia depends, including: IT consulting, architectural services, engineering services, and transactional legal advisory services for certain commercial activities
- The UK is also banning the export of nearly 700 goods vital to Russia’s industrial and technological capabilities
- The Foreign Minister has summoned the Russian Ambassador Andrey Kelin to protest in the strongest possible terms against the illegal annexation of sovereign Ukrainian territory
The foreign minister today (30 September) announced new service and goods export bans targeting vulnerable sectors of Russia’s economy in response to Russia’s declaration of illegal annexation of four regions of Ukraine – a violation of its territorial integrity and political independence.
Russian-installed officials in four temporarily controlled regions of Ukraine have held mock referendums to justify their illegal seizure of Ukrainian land. The Russian regime has now announced the illegal annexation of these territories against the will of the Ukrainian people and in flagrant violation of international law.
The UK is moving in lockstep with international partners to attack key sectors of the Russian economy. The new measures will increase economic pressure on the Russian regime by targeting vulnerabilities and disrupting key supply chains.
Russia imports 67% of its services from sanctioned countries. Building on previous actions, the UK will prevent Russian access to:
- IT Consulting Services
- Architectural Services
- technical services
- advertising services
- Transactional Advisory Services
- Auditing Services
The UK has also sanctioned Elvira Nabiullina, the governor of the Central Bank of the Russian Federation. In her role, Nabiullina was instrumental in steering the Russian economy through the Russian regime’s illegal war against Ukraine and expanding the ruble into Ukrainian territories temporarily controlled by Russia. Nabiullina has been sanctioned and is personally subject to an asset freeze and travel ban.
The Foreign Minister has ordered the Russian Ambassador, Andrey Kelin, to be summoned to the ministry to protest the illegal annexation of sovereign Ukrainian territory in the strongest possible terms.
Secretary of State James Cleverly said:
Britain strongly condemns Putin’s announcement of the illegal annexation of Ukrainian territory. We will never recognize the results of these sham referendums or any annexation of Ukrainian territory.
The Russian regime must be held accountable for this heinous violation of international law. That is why we are working with our international partners to increase the economic pressure through new targeted service bans.
What is happening in Ukraine concerns us all and the UK will do everything to support their fight for freedom.
Russia is highly dependent on Western countries for legal services, as 85% of all legal services are imported from the G7 countries – as London is an international legal hub, the UK accounts for 59% of these imports. The new legal advice measures will cover certain trade and transaction services and will prevent Russia’s companies from doing business internationally.
IT consulting services will also be banned, including designing IT systems and software applications. Coupled with the UK’s previous ban on quantum computer exports and services, and with over 170,000 IT professionals fleeing Russia since the invasion began, these measures will further undermine Russia’s ability to keep up technological development with the rest of the world.
The UK is also working with international partners to cut Russia off from our engineering and architecture services. Russia imports 77% of these services from the G7, and today’s actions will seriously undermine future growth of Russia’s key industries.
These measures will also ban Russia’s access to other world-class professional services, including auditing and advertising services. With an estimated 80% of Russian imports in accounting, auditing, bookkeeping and tax consultancy coming from the UK, EU and US, these measures will further disrupt and hamper the ability of Russian companies to compete in the international market .
The export of almost 700 goods from the UK to Russia will also be banned. The list includes hundreds of commodities vital to production in Russia’s manufacturing sector, with imports from the UK topping £200m last year. In total, £19 billion worth of UK-Russia trade has been sanctioned in whole or in part, based on 2021 trade flows.
Finally, the UK will suspend the process by which measures to address the orderly failure of Russian banks are recognized under UK law if the bank is a sanctioned entity. This will prevent these Russian actions from having legal effect in the UK and possibly conferring an economic advantage on the Russian state.
Alongside today’s action, the UK continues to work with the G7 to finalize and implement the proposed price cap on Russian oil.
Many companies have already taken significant steps to condemn the Russian regime’s illegal invasion – 75% of foreign companies have responded to the invasion, 25% have withdrawn entirely – a clear sign of international condemnation.