Petrofac unit pays Russia sanctions settlement as HMRC names first company
UK sanctions enforcement is tightening as tax authorities begin publicly identifying companies that accept civil penalties for export control and sanctions breaches. Petrofac Facilities Management Limited pays a £569,157 compound settlement to HM Revenue and Customs after breaches linked to the wind-down of its Russian operations in 2022 and 2023.
Highlights
- Petrofac Facilities Management Limited paid a £569,157 settlement after self-reporting breaches of Russia sanctions that occurred during 2022 and 2023.
- HMRC publicly named PFML as part of the settlement, marking the first time it has done so for Russia sanctions violations involving UK companies.
- HMRC's new policy of naming offenders in compound settlements for sanctions breaches aims to increase transparency and aligns with broader UK enforcement practices.
Settlement details and enforcement shift
As reported by GOV.UK, Petrofac Facilities Management Limited, or PFML, becomes the first company publicly named by HM Revenue and Customs after accepting a compound settlement for Russia sanctions breaches.HMRC says the breaches occurred in 2022 and 2023 while PFML was winding down its Russian business. The company supplied sanctioned industrial goods to individuals connected to Russia and provided technical assistance related to those goods.
PFML self-reported the breaches to HMRC and fully cooperated with the investigation. The settlement totals £569,157.
Implications for UK sanctions compliance
HMRC says naming the company marks a change in how it handles compound settlements involving strategic exports and sanctions offences. Where appropriate, the authority will now include public naming as a condition when offering such settlements.Edwige Hill, Deputy Director in HMRC's Fraud Investigation Service, says non-compliance with Russia sanctions is a serious offence and that the UK Government has imposed its most severe sanctions package on a major economy. She says naming offenders aligns HMRC with other enforcement partners and sends a clear message about the consequences of breaching sanctions rules.
The new approach is intended to improve transparency and bring HMRC closer to other UK sanctions enforcement bodies, including the Office of Financial Sanctions Implementation.
Our earlier coverage of the UK’s sanctions enforcement push outlined how the Office of Financial Sanctions Implementation (OFSI) has been widening scrutiny beyond Russia to include Iran-related breaches, with enforcement ramping up across finance and crypto. We also noted plans to raise maximum fines for violations and described how UK authorities have been expanding resources and coordination to pursue higher-impact cases.
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