Committee publication · Correspondence · 24 February 2026
Letter to the Minister of State for Trade and the Economic Secretary to the Treasury relating to Russia's oil trade and use of crypto-assets, 2 February 2026
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: The UK's trade sanctions regime
Summary
The Business and Trade Committee, chaired by Liam Byrne MP, writes to the Minister of State for Trade and the Economic Secretary to the Treasury requesting detailed information on UK enforcement of trade sanctions against Russia's oil exports and the use of crypto-assets for sanctions evasion. The letter raises nine specific questions covering legislative timelines, enforcement mechanisms, flag state integrity, shadow fleet interdiction, and restrictions on crypto-asset political donations.
Key findings
- Russia continues exporting large quantities of oil above the Price Cap, particularly to India and China, with pipeline exports naturally not subject to the cap.
- Poor regulation of Flag Registries by many jurisdictions enables Russia's shadow fleet to operate with minimal due diligence despite sanctions.
- The Treasury has highlighted widespread use of crypto-currencies by Russian state entities to evade sanctions, with scale of concern equal to oil revenue sources.
- The US may progress Senator Lindsey Graham's bill imposing 500% secondary tariffs on goods from countries buying Russian oil, gas, and uranium.
- The UK has identified a legal basis to board and detain shadow fleet vessels in UK waters, but current government policy on enforcement action remains unclear.
Tone
ProceduralTopics
Key actors
Liam Byrne MP, Sir Chris Bryant MP, Lucy Rigby KC MP, Senator Lindsey Graham, Department for Business and Trade, HM Treasury, Foreign Office, HMRC
Notable line
“… the scale of sanctions evasion using crypto-assets should be of equal concern to the UK Government, in terms of its impact …”
Key Quotes
“While Russia has seen a sharp decrease in oil revenue, it continues to be exported in large quantities to many countries above the Price Cap, in particular to India and China.”
“The Treasury has recently highlighted the widespread use of crypto-currencies by the Russian State, or by entities linked to it, to evade sanctions.”
“… crypto-assets can also be used by malicious foreign actors to penetrate the UK political system via donations whose true source is thus disguised.”
Source · parliament.uk record ↗