header-logo header-logo

23 February 2024
Issue: 8061 / Categories: Legal News , Sanctions , International
printer mail-detail

More Russia sanctions—but are they effective?

The Foreign Office has imposed a further 50 sanctions against individuals and businesses connected to Russian president Vladimir Putin or which act as sources of Russian revenue

They include electronics companies, diamond and oil traders and munitions manufacturers. So far, the UK has sanctioned about 2,000 individuals and entities under its Russia sanctions regime.

Foreign Secretary David Cameron said the latest round of measures ‘will disrupt Putin’s ability to equip his now struggling military with high tech equipment and much needed weaponry, as well as blocking him from refilling his war coffers’.

Sanctions expert Robert Dalling, partner at Jenner & Block's London office, said: ‘Although new sanctions were announced on 22 February to mark the passing of two years since the invasion, the rate of new prohibitions has now slowed, partly because the UK has already targeted the sectors of the Russian economy that are a priority.

‘The emphasis now will be on ways to tackle circumvention, as well as bringing appropriate enforcement action against companies that breach the rules. The government may also look at loopholes, such as one reportedly allowing Russian-origin oil to enter the UK if it has been refined outside Russia.’

However, John Binns, partner at BCL Solicitors, questioned the effectiveness of the sanctions regime.

‘Sanctions always send a political message, but their practical impact varies considerably,’ he said.

‘Legislators have given broad powers to ministers in this area, and the courts adopt a hands-off approach. As sanctions continue to grow in scope, can we be sure that they are fair as well as effective?

‘The downsides of sanctions include the risk of backfiring (in particular, where non-sanctions countries step in to do the business we leave behind), countermeasures, controversy, and collateral damage on innocent parties. There’s also a fundamental constitutional problem, where parliaments allow ministers to decide what conduct to sanction and who has done it, and courts largely leave them to mark their own homework.’

Issue: 8061 / Categories: Legal News , Sanctions , International
printer mail-details

MOVERS & SHAKERS

Walkers—Muriel Marseille

Walkers—Muriel Marseille

Ashurst's Chief Risk Officer joins Walkers

Excello Law—John Osborne

Excello Law—John Osborne

Northern family lawyer John Osborne joins Excello

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

mfg Solicitors—Rebecca Rogers, Kennedy Langley & Victoria Griffiths

Trio of promotions announced at Kidderminster law firm mfg Solicitors

NEWS
A sole director can conspire with their own company for the purposes of the tort of unlawful means conspiracy, the High Court has ruled in a judgment with potentially wide implications for business disputes
The Court of Appeal has reinforced that domicile depends on intention rather than residence alone, in a significant post-Brexit ruling on cross-border financial remedy claims
The Chancery Division's long history comes to an end this autumn as it is reborn as the Business and Property Division, prompting questions over whether the shake-up is really necessary
The Financial Conduct Authority (FCA) continues to show that failing to disclose regulatory issues can attract harsher consequences than the original misconduct itself
Rejecting a generous settlement can prove an expensive mistake, as two recent high-profile cases demonstrate
back-to-top-scroll