Aberdeen energy firm pay £569,000 for Russia sanctions breach

An energy services firm in Aberdeen has paid more than £569,157 to HM Revenue and Customs (HMRC) for breaching Russian sanctions regulations.

Petrofac Facilities Management Limited (PFML) has entered into a “hybrid solution” that eliminates the need to apply to court for violations that occurred in 2022 and 2023, when the company ceased its operations in Russia.

According to HMRC, PFML supplied sanctioned industrial products to persons with links to Russia and provided technical assistance in relation to these products.

It became the first company publicly cited by the UK government’s tax office for accepting such a penalty.

HMRC said PFML self-reported the breaches and cooperated fully with the investigation.

He added that naming the company signals a shift in the way HMRC deals with compound settlements in relation to strategic exports and enforcement offences.

Edwige Hill, deputy director of HMRC’s fraud investigation service, said: “Failure to comply with Russia sanctions is a serious offense and the UK government, together with our international partners, have imposed the most severe package of sanctions ever imposed on a major economy.

“While naming the individuals involved aligns us with other enforcement partners, it also sends a clear message about the consequences of breaching enforcement rules.”