Major British energy firm fined £569,157 by HMRC after breaching Russia sanctions

Petrofac Facilities Management Limited has been ordered to pay £569,157 to HM Revenue and Customs (HMRC) after breaching UK sanctions imposed on Russia during its withdrawal from the country.The Aberdeen-headquartered energy services company became the first business to be publicly identified after agreeing what HMRC described as a compound settlement, under which a company pays a financial penalty to avoid court proceedings.The breaches occurred during 2022 and 2023 while Petrofac was exiting its Russian operations.HMRC said the public naming marks a significant change in its approach to sanctions enforcement and is intended to increase transparency while aligning its practices with other UK enforcement bodies. TRENDING Stories Videos Your Say The investigation found Petrofac had supplied industrial goods that were subject to UK sanctions to individuals connected with Russia, making those products available for use within the country.The company was also found to have provided technical assistance relating to the sanctioned goods, breaching UK regulations.HMRC said Petrofac voluntarily disclosed the breaches and fully cooperated throughout the investigation.A company spokeswoman said: The compound settlement reflected due consideration of our cooperation and the mitigating actions taken.The company said the breaches took place as it worked to withdraw from Russia following the introduction of UK 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.Ms Hill added: Naming those involved brings us into line with other enforcement partners while sending a clear message on the consequences of breaching sanctions rules.HMRC said it will now consider making public identification a standard condition when agreeing compound settlements relating to strategic export controls and sanctions breaches where appropriate.LATEST DEVELOPMENTSState pension to 'account for half' of DWP benefit spending as triple lock future in doubtHistoric UK tobacco brand to axe 9,000 jobs in major business overhaulEnergy bills to jump by £221 from Wednesday - but millions handed glimmer of hopeThe tax authority said the revised approach is intended to improve transparency and create greater consistency with other UK sanctions enforcement agencies, including the Office of Financial Sanctions Implementation.Petrofac designs, builds and operates energy infrastructure across the oil and gas, refining and renewable energy sectors, with operations spanning the Middle East and the UK North Sea.Its UK business, based in Aberdeen, includes managing North Sea oil platforms on behalf of major producers including BP and Shell.The company entered administration in October last year following the collapse of a renewables contract in the Netherlands.Since then, Petrofac has undergone a significant restructuring programme.In April, CBI completed the acquisition of the company's asset solutions division, preserving thousands of jobs as part of the transaction.Petrofac has also completed the sale of its Emirates engineering and construction business as it continues its wider corporate reorganisation. Our Standards: The GB News Editorial Charter