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.

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.

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