Britain steps up pressure on Russia by targeting its underground financial networks

Britain is targeting the financial channels it says help Russia sustain its wartime economy, including a Kremlin-backed network accused of moving funds and bypassing sanctions through foreign banks.

Finance Minister John Healey announced the tougher approach on Aug. 31 during a G20 finance ministers’ meeting in Asheville, North Carolina. Britain’s Treasury said it would increase pressure on the underground financial system supporting Russia after Moscow’s 2022 invasion of Ukraine.

The Office of Financial Sanctions Implementation will now be able to impose a maximum fine equal to the full value involved in a sanctions breach. The previous ceiling stood at 50 percent. Healey said Britain and its allies needed closer international cooperation to expose sanctions evasion and cut the financial networks supporting Russia’s aggression.

Britain’s National Crime Agency also issued a nationwide alert focused on the A7 network. The network is described as being used to transfer money, finance purchases and exploit foreign banking systems to avoid restrictions. The Treasury said the alert would help private companies identify and combat sanctions evasion.

“We are increasing economic pressure on Russian President Putin, leaving nowhere to hide for those helping him wage his illegal war,” Healey said. The Russian Embassy in London had not responded to the latest British measures.

“

We are increasing economic pressure on Russian President Putin, leaving nowhere to hide for those helping him wage his illegal war.