Issued by: HM Treasury

New figures released today (21 March) show the impact of UK sanctions on Russia.

• New data released today (21 March) reveals the full effect of UK sanctions on Russia – with over £25 billion of Russian assets reported frozen since Russia’s illegal invasion of Ukraine.

• Most severe sanctions Russia has ever faced to protect the national security – a foundation of the Plan for Change

• The Annual Review details the Office of Financial Sanctions Implementation’s (OFSI’s) efforts to drive compliance with financial sanctions through effective engagement, enhancement, and enforcement.

New data released today (21 March) in OFSI’s Annual Review reveals the full effect of UK sanctions on Russia – with over £25 billion of Russian assets reported frozen.

In conjunction with its allies, the UK has imposed the most severe sanctions Russia has ever faced. As of March 2024, the UK government designated 2,001 individuals and entities under the Russia sanctions regime.

Sanctions imposed by the UK and its allies have significantly impacted Russia’s economy, depriving it of over $400 billion since February 2022, equivalent to four years of Russia’s military spending.

Russia’s overall financial standing has weakened, with the federal budget expected to remain in deficit until at least 2026. The rouble has depreciated significantly, and Russia is experiencing a shortage of skilled workers, further straining the economy. Inflation is rising, with rates far exceeding targets, while high interest rates and economic isolation have made borrowing costly. As a result of UK sanctions, Russia’s military has been forced to turn to rogue states like North Korea and Iran for critical supplies.

Economic Secretary to the Treasury, Emma Reynolds, said

"The UK has frozen £25 billion worth of Russian assets and working with our allies, we have deprived Russian of over $400 billion the equivalent to four years of Russia’s military spending. We will continue to robustly enforce our financial sanctions as part of our wider response to Russia’s barbaric invasion of Ukraine."

As well as demonstrating the impact of UK financial sanctions on Russia, the Annual Review details OFSI’s efforts to drive compliance with financial sanctions through effective engagement, enhancement, and enforcement.

OFSI has sought to enhance sanctions implementation through increasing resources across all functions, with a particular focus on licensing and enforcement. This expansion has been complemented by investments in new tools and processes.

OFSI is now seeing the results of this work. The OFSI Enforcement team progressed a substantial number of investigations during 2023-24, more than tripling the number of closed cases from the previous year. A particular example of enforcement action taken by OFSI is the ‘Wise disclosure’ in August 2023, which demonstrated OFSI’s willingness to publicly name firms who have not complied with financial sanctions. OFSI also issued monetary penalties to International Concierge Services Limited (ICSL) in August 2024 and Herbert Smith Freehills (HSF) Moscow in March 2025. These are the first of several cases in OFSI’s pipeline which are linked to Russia’s invasion of Ukraine, with more enforcement action to come in 2025.

More information

• The Office of Financial Sanctions Implementation (OFSI) Annual Review (https://www.gov.uk/government/publications/ofsi-annual-review-2023-24-engage-enhance-enforce) was published on Friday 21 March, covering OFSI’s operations during the financial year 2023-24.

• The £25 billion figure is based on OFSI’s Russian Frozen Assets In-Year Reporting. This is where relevant firms are obliged to report to OFSI as soon as practicable, information concerning funds or economic resources belonging to, held, or controlled by a designated person.

• Asset freeze: An asset freeze prevents any UK citizen, or any business in the UK, from dealing with any funds or economic resources which are owned, held, or controlled by the designated person. UK financial sanctions apply to all persons within the territory and territorial sea of the UK and to all UK persons, wherever they are in the world. It also prevents funds or economic resources being provided to or for the benefit of the designated person

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