An energy services firm has paid more than £500,000 to HM Revenue and Customs (HMRC) for breaching Russia sanctions regulations.
Petrofac Facilities Management Limited (PFML) paid a £569,157 compound settlement and has become the first company to be publicly named by HMRC for accepting such a penalty.
The breaches by PFML occurred in 2022 and 2023 while the company was winding down its Russian operations. The company supplied sanctioned industrial goods to individuals connected to Russia and provided technical assistance relating to those goods.
PFML self-reported the breaches to HMRC and fully cooperated with the investigation.
Naming the company marks a shift in how HMRC handles compound settlements in relation to strategic exports and sanctions.
Edwige Hill, Deputy Director in HMRC's Fraud Investigation Service, said:
Non-compliance with Russia sanctions is a serious offence and together with our international partners, the UK Government has implemented the most severe package of sanctions ever imposed on a major economy.
Naming those involved brings us into line with other enforcement partners whilst sending a clear message on the consequences of breaching sanctions rules.
Where appropriate, HMRC will now include naming as a condition when offering a compound settlement for strategic export and sanctions offences.
The new approach will improve transparency and ensure greater consistency with other UK sanctions enforcement bodies such as the Office of Financial Sanctions Implementation (OFSI) .
