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Former Russian Governor Found Guilty of Circumventing Sanctions in Landmark Case

A significant legal milestone has been reached in the UK with the conviction of Dmitrii Ovsiannikov, a former Russian government minister who served as governor of Sevastopol in Crimea, on charges related to sanctions violations. This case marks the first prosecution in the UK for circumventing sanctions under the Russian Regulations 2019.

Ovsiannikov was convicted of six out of seven counts of intentionally evading sanctions between February 2023 and January 2024. His actions included opening an account with Halifax Bank of Scotland (HBOS) and facilitating the transfer of tens of thousands of pounds from his wife, Ekaterina Ovsiannikova. The jury, however, was unable to reach a consensus on one specific charge.

Throughout the proceedings at Southwark Crown Court, Ovsiannikov appeared stoic in a navy suit as the verdicts were read. His brother, Alexei Owsjanikow, was also found guilty of aiding in the sanction evasion by covering school expenses totaling £41,027 for his brother’s children.

Under the sanctions regime, Ovsiannikov faced strict restrictions that even banned him from purchasing groceries. Despite this, he managed to engage in financial transactions that were in direct violation of these regulations. His wife was acquitted of four counts related to financing Ovsiannikov, while his brother faced no penalties for actions including purchasing a car on his behalf.

During the trial, the defense maintained that while transactions took place, the defendants were largely unaware that their activities constituted a violation of the sanctions, arguing that they did not recognize Ovsiannikov’s status as a designated individual under UK law.

The background of this case underscores Ovsiannikov’s significance in Russian politics. Appointed by President Vladimir Putin as the governor of Sevastopol after Crimea’s controversial annexation in 2014, Ovsiannikov was seen as a pivotal figure in the governance of the region. His election as governor in 2017 was part of a Russia-organized process that lacked international recognition.

In light of his actions, the EU designated him a sanctioned individual on November 21, 2017, due to his role in jeopardizing Ukraine’s territorial sovereignty. This designation made him ineligible for entry into EU member states and affected his financial access within the UK, given that it was an EU member at that time.

Ovsiannikov’s legal troubles intensified after he applied for a UK passport in August 2022, having traveled from Russia to Turkey shortly before his application. His wife also received clearance to enter the UK under the pretext of her children’s education, marking a significant shift in their circumstances. However, upon his arrival in the UK on February 1, 2023, he remained under the sanctions enforced by the UK, even after the European Union had annulled his designation in October 2022.

Evidence presented in court suggested that Ovsiannikov was aware of his sanctioned status as he sought the revocation of his designation shortly after moving to the UK. The prosecution argued that this indicated a clear understanding of the legal implications of his status as a designated person.

In statements following the verdicts, representatives from the Crown Prosecution Service (CPS) emphasized the importance of this case in demonstrating the effectiveness of the sanctions regime. They reiterated that the sanctions were put in place to pressure Russia to cease military aggression, particularly concerning Ukraine. CPS officials conveyed hopes that this conviction would signal a heightened vigilance against individuals attempting to evade sanctions.

Foreign Office minister Stephen Doughty affirmed the UK government’s commitment to enforcing sanctions robustly. He stated, “Mr. Ovsiannikov thought he could hide from our sanctions. Today’s verdict proves otherwise.”

The court has scheduled further proceedings where both Ovsiannikov and Owsjanikow will be sentenced, as their case underscores the ongoing global efforts to enforce reparative actions against individuals involved in breaches of sanctions related to international conflicts.

Source
www.theguardian.com