A new Office of Trade Sanctions Implementation (OTSI) is to be established in early 2024 with responsibility for the civil enforcement of trade sanctions, ministers said today.

The unit will help businesses comply with sanctions and investigate potential breaches, issuing civil penalties and referring cases to HMRC for criminal enforcement where needed.

Its remit will involve activity by companies who may be avoiding sanctions by sending products through other countries.

Nusrat Ghani, the UK’s minister of state for industry and economic security, said: “Our package of sanctions, the most severe ever imposed on a major economy, is working – goods imports from Russia to the UK have already plummeted by 94%.

“But we are leaving no stone unturned in our commitment to stopping Putin’s war machine. That means clamping down on sanctions evaders and starving Russia of the technologies and revenues it needs to continue its illegal invasion.

“Today’s announcement will help us do that, and send a clear message to those breaking the rules that there is nowhere to hide.”

Sanctions minister Anne-Marie Trevelyan added: “Today’s announcement will further strengthen the UK’s sanctions system and allow us to maximise the impact that trade sanctions have on those who continue to flout the global rules.

“Without international sanctions, we estimate Russia would have over $400 billion more to fund the war, enough to fund the invasion for a further four years. We are hitting Russia where it hurts and starving Putin of the resources he needs to fund his illegal war on Ukraine.”