HMRC settles with Petrofac unit for £569k over Russia sanctions breaches during its Russian divestment
UK exporters winding down Russia operations must screen goods and technical assistance against the Russia Regulations at the point of divestment — HMRC settled with a Petrofac unit for £569,157.07 over breaches committed during its Russian exit
Change
On 29 June 2026, in Notice to exporters 2026/15, HM Revenue and Customs (HMRC) announced a compound settlement of £569,157.07 with Petrofac Facilities Management Limited (PFML) for breaches of the Russia (Sanctions) (EU Exit) Regulations 2019, committed while PFML was divesting its operations in Russia in 2022 to 2023, involving sanctioned industrial goods made available to a Russia-connected person and for use in Russia, plus related technical assistance.
Why it matters
HMRC settled with PFML for £569,157.07 over offences under the Russia Regulations committed during PFML's 2022–23 divestment from Russia. PFML breached Regulation 46Y(2)(c) twice in relation to industrial goods sanctioned under the G7 Dependency and Further Goods chapter — once for making the goods available to a person connected to Russia, once for making them available for use in Russia — and breached Regulation 46Z(1)(b) by providing technical assistance in respect of those goods. PFML self-reported and fully cooperated. HMRC reiterated its compound-settlement criteria: such settlements are available where a breach was inadvertent or due to weaknesses in internal controls and the exporter voluntarily disclosed it, and are not normally offered where the exporter intended to breach the controls.
Implications
- — UK exporters divesting or winding down Russian operations must apply full sanctions screening to goods and assistance transferred during the exit itself — HMRC treated breaches committed in the course of PFML's 2022–23 Russian divestment as settleable offences, showing the wind-down phase is a live compliance risk, not a clean exit.
- — Trade-sanctions and export-control teams must screen for the G7 Dependency and Further Goods category under the Russia Regulations and block making such goods available to Russia-connected persons or for use in Russia — PFML's two Regulation 46Y(2)(c) breaches turned on exactly these prohibitions.
- — Compliance teams must extend controls beyond physical goods to technical assistance connected to them — PFML's separate Regulation 46Z(1)(b) breach was for providing technical assistance in respect of the goods, a distinct offence from supplying the goods.
- — Exporters that discover an inadvertent or controls-driven breach should weigh voluntary disclosure — HMRC states compound settlements are available where the breach was inadvertent or due to internal-control weaknesses and was self-reported, but are not normally offered where the breach was intentional.
Who is affected
- — UK exporters divesting or winding down operations in Russia
- — Trade-sanctions and export-control compliance teams at UK exporters
- — Compliance teams managing technical-assistance controls alongside goods controls
- — Legal and compliance functions weighing voluntary disclosure of export-control breaches