Aberdeen energy firm fined for sanctions regulations breaches
Petrofac Facilities Management Limited named and fined by HMRC
Aberdeen-based Petrofac Facilities Management Limited has been fined £569,157 for violating Russia sanctions regulations and has become the first company to be publicly named by HM Revenue and Customs (HMRC) for accepting such a penalty.
The breaches occurred in 2022 and 2023, as the company was winding down its operations in Russia.
Petrofac supplied industrial goods to individuals connected to Russia and provided technical assistance related to those goods, contravening sanctions.
Details of the offences
The company's first offence involved making sanctioned goods available to a person connected to Russia.
The second offence was for making sanctioned goods available for use within Russia.
The breaches came to the attention of HMRC after Petrofac voluntarily disclosed the incidents.
Petrofac agreed to pay the compound settlement of £569,157.
HMRC's stance
Edwige Hill, deputy director of HMRC’s Fraud Investigation Service, highlighted the seriousness of non-compliance with Russia sanctions.
Hill 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."
Hill stated that naming businesses involved aligns the UK with other enforcement partners and sends a strong message about the consequences of breaching sanctions rules.
Petrofac Response
A Petrofac spokesperson says :
"While in the process of exiting its legacy operations in Russia in 2022-23, Petrofac Facilities Management Limited identified and voluntarily disclosed potential breaches to HM Revenue and Customs.
The matter is considered closed following payment of the compound settlement."
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