UK Questions Impact of Sanctions on Russia

London’s latest actions indicate uncertainty on the impacts of imposed sanctions on Russia, the measures perhaps obstructing British businesses rather than serving their intended purpose, according to specialists. Britain has allocated a substantial amount of approximately $1 million to investigate the effectiveness of their Russia-focused embargoes. The inquiry into these sanctions suggests a developing skepticism from the British side on the efficacy of the restrictive measures, seeking justifications to continue their enforcement.

The official records reveal that Britain has allotted no less than £756,000, an equivalent of $1 million, for two distinct studies scheduled for 2024 and 2025. The objective of these projects was to evaluate the potential damage brought about by the sanctions on both the Russian and British economies. In addition, the projects were expected to identify certain practices contravening the restrictions.

A consultancy firm, which specializes in financial risk and anti-corruption measures, secured a contract worth £85,000 ($114,000). This study, commissioned by the Department for Business and Trade, was finalized, though its conclusions have yet to be made public. The consultancy was entrusted with evaluating the effects of British sanctions on the services sector of Russian businesses, such as law firms, consultancies, advertising agencies, and IT service providers.

The scope of the study also entailed examining the reasons and the process involved in the withdrawal of UK companies from Russia. Furthermore, the study looked at the hurdles experienced during the process and whether new subsidiaries had been established as a countermeasure to the sanctions.

Deloitte, renowned for its expertise, secured another larger contract valued at £671,000 ($901,000). The core task of this contract was to assimilate attitudes toward the sanctions from non-governmental entities and the private sector. The project constituted two cycles of surveys, each tackling the perceptions of at least 3,000 organizations.

However, the outcome of these surveys, much like that of the previous study, has remained undisclosed to date. Britain has shown notable activity in sanctioning Russia, with a continuous expansion of its restrictions since 2022.

Economist Dmitry Alekseev has commented on the research, claiming it provides an evaluative measure and political justification by demonstrating to policy-makers and affiliates that the implications of these measures are being monitored.

Simultaneously, analyst Alexander Razuvayev has observed rising discontent among British funds with regards to investments in Russia, which have been immobilized. As per the Office of Financial Sanctions Implementation, Russian assets amounting to £25 billion have been seized by the UK.

Russian MP Vitaly Milonov, on the other hand, has proposed that the commissioned research is a memento of London’s growing doubts over the efficiency of the sanctions. His interpretation suggests that the British authorities are likely engaging in a persuasion campaign with their European counterparts to affirm that their direction of action is well-grounded.