HMRC concludes a compound settlement for breaches of Russian sanctions

On 8 July, HM Revenue and Customs (HMRC) published their Notice to Exporters: NTE 2025/18 as relate to the compound settlement of £1,160,725.67 with the UK exporter that made goods available to Russia in violation of the Russia (Sanctions) (EU Exit) Regulations 2019.

The compound settlement, which was paid to HMRC in May 2025, is the largest sum paid out for a breach of Russia sanctions offence to date.

The HMRC did not name the company that committed the sanctions breach, which is in line with their approach to disclosure of names on a case-by-case basis, as outlined in their February response to the Treasury Select Committee of the House of Commons. In situations where a business has taken steps to bring themselves in compliance, HMRC normally would not “name them if doing so could have a disproportionate impact on their reputation, and ability to trade domestically and internationally”.

The latest compound settlement shows the increasing enforcement of sanctions in the UK. It is recommended that businesses regularly assess their risks and re-evaluate existing sanctions programmes and policies to avoid hefty penalties and criminal responsibilities.

Updated: 11 July 2025

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