NTE 2025/18: compound settlement for breaches of export control
Published 8 July 2025
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This publication is available at https://www.gov.uk/government/publications/notice-to-exporters-202518-compound-settlement-for-breaches-of-export-control/nte-202518-compound-settlement-for-breaches-of-export-control
Introduction
HM Revenue and Customs (HMRC) has concluded a compound settlement in relation to a UK exporter that made goods available to Russia in breach of The Russia (Sanctions) (EU Exit) Regulations 2019. The compound settlement involved a penalty of £1,160,725.67 which was paid to HMRC in May. This is the largest compound settlement HMRC has concluded for a Russia sanctions offence.
Following Russia’s illegal invasion of Ukraine, the UK and our international partners have implemented the most severe package of sanctions ever imposed on a major economy, which has deprived the Russian state of at least $450 billion in funding for its war machine.
Businesses trading internationally should ensure that they comply with sanctions and licensing requirements and consult guidance available on GOV.UK.
Failure to comply with sanctions
Failure to comply with sanctions is a serious offence and those who breach them may be subject to a range of enforcement actions, including large financial penalties or referral for criminal prosecution.
Further information and guidance
Read further guidance on the scope and operation of the UK’s overall sanctions regime.
Read further information on assessing and addressing potential sanctions circumvention and European Commission guidance on preventing Russian export control and sanctions evasion.
If you have any indication that your products have ended up being supplied or diverted to Russia, contact HMRC.
If you discover you have imported or exported goods or transferred controlled technology without an appropriate licence in place, you should consider reporting the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible.