The Guardian 15 March 2022 - by Peter Walker and Jessica Elgot
© Provided by The Guardian Photograph: Merih Ozmen/Alamy
The UK is to ban the export of luxury products to Russia including fashion and valuable artworks, as well as raising tariffs on key Russian products including vodka and fur, as part of the latest sanctions measures.
Following a similar move in Washington, the UK is to deny Russia and Belarus access to most favoured nation tariff for hundreds of their exports – a key benefit of World Trade Organization membership.
More sanctions on individual oligarchs and elites, as well as businesses, politicians and organisations are also expected to be announced this week after the passage of the economic crime bill, intended to make it swifter and easier to target oligarchs and Russian interests.
The government said £900m-worth of goods would be subject to huge additional tariffs as a fresh barrier to trade with Russia, coming into force next week.
Among the initial list of Russian goods facing additional 35% tariffs are Russian fur, vodka and other spirits, white fish, as well as industrial products such as fertilisers, tyres and cement.
The export ban will include luxury vehicles, high-end fashion and works of art going from the UK to Russia. The Treasury said it would also no longer issue any new guarantees, loans and insurance for exports to Russia and Belarus.
It said that without government export credit support, any financial backing from the private sector to the region was “virtually impossible”.
The Department for International Trade said 54 licences for exports to Russia have already been voluntarily surrendered by UK businesses.
Further individual sanctions are also expected to be announced. On Monday, MPs and peers sat late into the night to ensure the passage of the economic crime bill, which redrew some sanctions law, which ministers said would make sanctions and other economic measures easier.
Liz Truss, the foreign secretary, has promised a “hit list” of hundreds more oligarchs, Russian elites, politicians, businesses and organisations that the UK will target, having been previously criticised for the slow pace of the sanctions.
“Liz has moved heaven and earth to get this legislation done. It transforms our ability to sanction Russia and go further and faster than before,” one government source said.
