UK names Petrofac unit in first public HMRC sanctions settlement over Russia breaches

LONDON, June 29, 2026 — HM Revenue and Customs said Petrofac Facilities Management Limited paid a £569,157 compound settlement for breaching UK Russia sanctions, becoming the first company publicly named by the tax authority as part of such a resolution. The breaches occurred in 2022 and 2023 while the company was winding down its Russian operations, HMRC said. It said the company supplied sanctioned industrial goods to people connected to Russia and provided technical assistance linked to those goods.

HMRC said PFML self-reported the breaches and fully cooperated with investigators. Even so, officials said the case marks a policy shift, with naming now set to be used where appropriate as a condition of compound settlements for strategic export and sanctions offences. HMRC said the change is meant to improve transparency and bring its approach into closer alignment with other UK sanctions enforcement bodies, including the Office of Financial Sanctions Implementation.

The case is significant because compound settlements have historically allowed HMRC to resolve suspected sanctions and export control offences out of court through payment, without publicly identifying the company involved. HMRC says it offers such settlements only where it believes there is sufficient evidence to prosecute and where settlement is judged more appropriate than legal proceedings.

The move comes as the British government sharpens sanctions enforcement against Russia and tries to increase the deterrent effect of public enforcement action. Related UK guidance in 2026 emphasized stronger, more transparent sanctions enforcement, while updated government guidance for exporters warned businesses to guard against Russian sanctions evasion and circumvention.