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UK announces new economic sanctions against Russia

The UK Government has today announced a ban on exports to Russia of high-end luxury goods, while also hitting hundreds of key products with new import tariffs.

  • UK to deny Russia and Belarus access to Most Favoured Nation tariff for hundreds of their exports, depriving both nations key benefits of WTO membership
  • UK government publishes initial list of goods worth £900 million - including vodka - which will now face additional 35 percent tariff, on top of current tariffs.
  • UK to ban exports of luxury goods to Russia alongside G7 allies.

The UK Government has today announced a ban on exports to Russia of high-end luxury goods, while also hitting hundreds of key products with new import tariffs that represent a 35 percentage point hike on current rates.

Russian vodka is one of the iconic products affected by the tariff increases, while the export ban will likely affect luxury vehicles, high-end fashion and works of art.

The measures will cause maximum harm to Putin’s war machine while minimising the impact on UK businesses as G7 leaders unite to unleash a fresh wave of economic sanctions on Moscow.

The export ban will come into force shortly and will make sure oligarchs and other members of the elite, who have grown rich under President Putin’s reign and support his illegal invasion, are deprived of access to luxury goods.

Denying Russia access to Most Favoured Nation tariff treatment for key imports and applying additional tariffs will restrict Russian exports to the UK. The UK is working with our international partners and is supporting the World Trade Organization to prevent those who fail to respect the rules-based international order from reaping its benefits.

International Trade Secretary Anne-Marie Trevelyan said:

The UK stands shoulder to shoulder with our international partners in our determination to punish Putin for his barbaric actions in Ukraine, and we will continue our work to starve his regime of the funds that enable him to carry them out.

The World Trade Organization is founded on respect for the rule of law, which Putin has shown he holds in contempt. By depriving his government of key benefits of WTO membership, we are denying him further resource for his invasion.

Chancellor of the Exchequer Rishi Sunak said:

Our new tariffs will further isolate the Russian economy from global trade, ensuring it does not benefit from the rules-based international system it does not respect.

These tariffs build on the UK’s existing work to starve Russia’s access to international finance, sanction Putin’s cronies and exert maximum economic pressure on his regime.

These new measures will further tighten the growing economic pressure on Russia and ensure the UK acts in line with sanctions imposed by our allies.

Last week, we imposed asset freezes and travel bans on seven leading oligarchs and 386 members of the Russian Duma. The UK has also provided humanitarian aid to Ukraine totalling almost £400 million and provided defensive weapons, including more than 3,600 anti-tank missiles, and essential civilian supplies like generators and medicines.

Background:

  • DIT has expanded its Export Support Service (ESS) to act as a single point of enquiry for businesses and traders with questions relating to the situation in Ukraine and Russia.
  • Any business that has questions about trading with Ukraine or Russia can call our helpline using the number 0300 303 8955 for support or visit our support page
  • DIT will continue to support business and traders during this period. Having a dedicated export support team ready to help at the end of the phone will ensure business can access the information they need at any time.
  • Further details on the export ban will follow in due course; previous export bans have included items such as high-end fashion, works of art and luxury vehicles.
  • Russian imports of the following products will face an additional tariff increase of 35 percentage points, over and above any existing tariff rate under the terms of the move.
  • These products have been selected to inflict maximum damage on the Russian economy while minimising the impact on the UK: Iron, steel, fertilisers, wood, tyres, railway containers, cement, copper, aluminium, silver, lead, iron ore, residue/food waste products, beverages, spirits and vinegar (this includes vodka), glass and glassware, cereals, oil seeds, paper and paperboard, machinery, works of art, antiques, fur skins and artificial fur, ships and white fish
  • These tariff increases will be legislated for by using our powers under the Taxation (Cross-border Trade) Act (2018), and operationalised in the UK’s customs systems CHIEF and CDS, next week.

Invasion of Ukraine

Find out about the UK’s response

 

Channel website: https://www.gov.uk/government/organisations/hm-treasury

Original article link: https://www.gov.uk/government/news/uk-announces-new-economic-sanctions-against-russia

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