New data released today (21 March) in OFSI's Annual Review
reveals the full effect of UK sanctions on Russia – with over £25
billion of Russian assets reported frozen.
In conjunction with its allies, the UK has imposed the most
severe sanctions Russia has ever faced. As of March 2024, the UK
government designated 2,001 individuals and entities under the
Russia sanctions regime.
Sanctions imposed by the UK and its allies have significantly
impacted Russia's economy, depriving it of over $400 billion
since February 2022, equivalent to four years of Russia's
military spending.
Russia's overall financial standing has weakened, with the
federal budget expected to remain in deficit until at least 2026.
The rouble has depreciated significantly, and Russia is
experiencing a shortage of skilled workers, further straining the
economy. Inflation is rising, with rates far exceeding targets,
while high interest rates and economic isolation have made
borrowing costly. As a result of UK sanctions, Russia's military
has been forced to turn to rogue states like North Korea and Iran
for critical supplies.
Economic Secretary to the Treasury, , said
The UK has frozen £25 billion worth of Russian assets and working
with our allies, we have deprived Russian of over $400 billion
the equivalent to four years of Russia's military spending. We
will continue to robustly enforce our financial sanctions as part
of our wider response to Russia's barbaric invasion of Ukraine.
As well as demonstrating the impact of UK financial sanctions on
Russia, the Annual Review details OFSI's efforts to drive
compliance with financial sanctions through effective engagement,
enhancement, and enforcement.
OFSI has sought to enhance sanctions implementation through
increasing resources across all functions, with a particular
focus on licensing and enforcement. This expansion has been
complemented by investments in new tools and processes.
OFSI is now seeing the results of this work. The OFSI Enforcement
team progressed a substantial number of investigations during
2023-24, more than tripling the number of closed cases from the
previous year. A particular example of enforcement action taken
by OFSI is the ‘Wise disclosure' in August 2023, which
demonstrated OFSI's willingness to publicly name firms who have
not complied with financial sanctions. OFSI also issued monetary
penalties to International Concierge Services Limited (ICSL) in
August 2024 and Herbert Freehills (HSF) Moscow in March 2025.
These are the first of several cases in OFSI's pipeline which are
linked to Russia's invasion of Ukraine, with more enforcement
action to come in 2025.
More information
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The Office of Financial
Sanctions Implementation (OFSI) Annual Reviewwas
published on Friday 21 March, covering OFSI's operations
during the financial year 2023-24.
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The £25 billion figure is based on OFSI's Russian Frozen
Assets In-Year Reporting. This is where relevant firms are
obliged to report to OFSI as soon as practicable, information
concerning funds or economic resources belonging to, held, or
controlled by a designated person.
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Asset freeze: An asset freeze prevents any UK citizen, or any
business in the UK, from dealing with any funds or economic
resources which are owned, held, or controlled by the
designated person. 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. It
also prevents funds or economic resources being provided to
or for the benefit of the designated person
