Committee publication · Correspondence · 24 February 2026
Letter from the Minister of State for Trade relating to Russia’s oil trade and use of crypto-assets, 16 February 2026
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: The UK's trade sanctions regime
Summary
Minister of State for Trade Sir Chris Bryant responds to the Business and Trade Sub-Committee's February 2026 questions on UK Russia sanctions. The government confirms plans to ban refined oil product imports from Russian origin (spring 2026), details enforcement mechanisms via HMRC, outlines efforts to counter shadow fleet vessels and flag state integrity, and describes cryptocurrency sanctions compliance measures including a new multi-agency crypto task force.
Key findings
- Government anticipates legislative ban on Russian-origin refined oil imports will come into effect spring 2026; HMRC enforcement requires importers to provide supply chain documentation proving non-Russian origin.
- Government lacks sufficiently reliable data to estimate current UK imports of Russian-origin refined oil products due to WTO rules of origin classification issues.
- Shadow fleet identified as top foreign policy priority; UK engaging multilaterally through IMO, pursuing vessel designation, and committed to interdiction powers under UNCLOS within international law frameworks.
- Office of Financial Sanctions Implementation (OFSI) and new Crypto Cash Fusion Cell (multi-agency pilot with NCA, Met Police, HMRC, FCA, City of London Police) target crypto-asset sanctions evasion; anonymity of crypto transactions prevents reliable quantification of trade-based evasion.
- Independent review into foreign financial interference in UK politics commissioned December 2025 (led by Philip Rycroft); will assess safeguards against illicit funding including cryptoassets; findings due end of March 2026.
Tone
ProceduralTopics
Key actors
Sir Chris Bryant MP, Liam Byrne MP, Lucy Rigby KC MP, Philip Rycroft, HM Revenue and Customs, Office of Financial Sanctions Implementation, Crypto Cash Fusion Cell
Notable line
“The Government treats the use of cryptoassets to breach or evade financial and trade sanctions with the same seriousness as traditional fiat currency.”
Key Quotes
“The Government remains fully committed to res tricting Russia's potential war-funding, clamping down on key sources of Russian revenue.”
“We anticipate the ban will come into effect in spring 2026, subject to the Parliamentary timetable.”
“Importers will need to be able to provide documentation to demonstrate evidence of an oil product's supply chain at the point of import or retrospectively.”
“Tackling the shadow fleet is a top foreign policy priority for the Government, and our priority is working with the EU and other partners towards our common goals on improving sub-standard shipping practices at the International …”
“The Government treats the use of cryptoassets to breach or evade financial and trade sanctions with the same seriousness as traditional fiat currency.”
“… the anonymised nature of cryptoasset transactions creates difficulties attributing instances of financial sanctions evasion to specific trade-based economic activity, so the Government is unable to provide accurate figures on the extent of cryptoasset abuse in a trade context.”
“The law is clear that all donations made to political parties, regardless of what form they come in, are subject to the same regulations.”
Source · parliament.uk record ↗