UK doubles penalties for sanctions breaches to squeeze Russia

Britain on ​Monday ramped up pressure on ​shadow financial systems underpinning Russia's war economy, doubling penalties ​for sanctions breaches, the UK Treasury said.

"We are ramping up the economic pressure on Putin and leaving those aiding his illegal war with nowhere ‌to hide," ⁠UK finance minister ⁠John Healey said in a statement released as he attends his first ​G20 in North Carolina.

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European finance ministers and officials have bristled over the United ​States' move to invite Russia to participate in the summit as Moscow's war against Ukraine continues.

"The UK and our allies must ​step up our international cooperation to expose ⁠sanctions evasion, ‌and disrupt the financial networks fuelling Russia's aggression," ​Healey said.

He ​doubled the maximum fine available to the ⁠Office of Financial Sanctions Implementation (OFSI) to 100% from 50% ​of the value of a sanctions breach.

The UK National ​Crime Agency also issued a nationwide alert targeting the Kremlin-backed A7 network, which the British government has said was used to route funds, finance procurement and exploit foreign banking systems to evade restrictions.

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The alert aims to support the private sector in ‌bearing down on sanctions evasion and ensure Russia pays the full cost of the sanctions, the UK Treasury ​said.

The Russian ​embassy in London ⁠did not immediately respond to a request for comment on the government's latest actions.

Britain had in May targeted Russia-linked cryptocurrency platforms, banks and ​financial networks that it said were used to bypass sanctions, freezing their assets and barring UK firms from processing payments and holding correspondent banking ties.

The UK also announced new sanctions this month targeting Russian ships, banks and industrial companies.