UK accountants to be banned from providing business services to Russia

UK firms make up 10 per cent of Russian imports in these sectors, according to the Foreign and Commonwealth Office. It says Russia is heavily reliant on western services companies for the production and export of manufactured goods.

Legal services appear not to be included in the ban, although many of the largest UK-based law and accountancy firms have already announced their disengagement from the Russian market, according to the Institute of Chartered Accountants in England and Wales' Managing Director Iain Wright.

The measures are not expected to take effect for several weeks, as it will take time for service providers to withdraw from their existing contracts. Similar concessions were made by the European Union in April 2022, when it banned the provision of management services to trusts and other arrangements associated with Russian nationals or residents.

The UK has also announced asset freezes and travel bans against Russian news media providers and individuals, including journalists, associated with them. There are now 1,600 individuals and entities subject to UK sanctions.

Sources

• UK government
• UK parliament
• Law Society Gazette
• The Guardian
• STEP International News 14 April 2022: EU prohibits provision of services to Russian-linked trusts