NCA secures first convictions for breach of UK sanctions

Dmitrii Ovsiannikov, the former Russia appointed Governor of the illegally annexed Ukrainian city of Sevastopol, has become the first person to be convicted for breaching the UK’s Russia sanctions.

Ovsiannikov was found guilty of circumventing sanctions regulations and money laundering after receiving £76,000 from his wife and a new Mercedes from his brother.

His brother Alexei Owsjanikow was also found guilty of circumventing sanctions regulations, having made economic resources available to Dmitrii. These are the first convictions for enabling a designated person.

In 2016, Russian President Vladimir Putin appointed Dmitrii Ovsiannikov as governor of the city of Sevastopol in Crimea, a position he held until July 2019. He was sanctioned by the EU, and when the UK left the EU, the UK imposed financial sanctions under the Russia Regulations 2019.

Although sanctioned, Dmitrii Ovsiannikov secured a UK passport in January 2023 by virtue of having a British father.  Dmitrii arrived in Britain on 1 February 2023, and joined his wife and two young children who were already living in his brother's house in Clapham.

The same month, Dmitrii Ovsiannikov applied for a bank account into which his wife transferred £76,000, allowing him to put down a deposit on a Mercedes Benz GLC 300 SUV. However, the bank subsequently realised he was on the UK sanctions list and froze the account.

Dmitrii recovered his deposit, after which his brother Alexei Owsjanikow bought the car instead, and insured it for Dmitrii to drive.

At the time, Dmitrii was well aware he was subject to UK sanctions, having already applied to the Foreign Commonwealth and Development Office to have his designation lifted.

Dmitrii Ovsiannikov was arrested and interviewed in January 2024. Alexei Owsjanikow attended a voluntarily interview about his role in enabling sanctions evasion. Four months later, Alexei paid more than £40,000 in school fees for his brother's two youngest children, a breach of the sanctions.

Graeme Biggar, Director General of the NCA said: “Dmitrii Ovsiannikov and his brother clearly knew that he was subject to these sanctions and deliberately took steps to circumvent the controls.

“These convictions demonstrate not only that designated individuals are on our radar, but so are those who enable breaches of the regulations.

“Today’s verdict is testament to the hard work and determination of the NCA’s Combatting Kleptocracy Cell, which has delivered more than 180 disruptions to remove or reduce a criminal threat posed by Putin-linked elites and their enablers since the invasion of Ukraine.”

Stephen Doughty, FCDO Sanctions Minister said: “Mr Ovsiannikov thought he could hide from our sanctions. Today’s verdict proves otherwise.

“We are resolutely committed to increasing pressure on Putin, his cronies, and all those who aid his barbaric war in Ukraine.

“When this government came to office, we made clear we were committed to making sure sanctions were used most effectively – and crucially, robustly enforced.

“We have been working tirelessly with colleagues across government to ensure our sanctions enforcement regime is both effective and efficient, and to give the right tools to our law enforcement agencies to be able to take robust action when necessary.”

Julius Capon, Unit Head Prosecutor of the Crown Prosecution Service said: “The sanctions regime was introduced against key individuals to encourage Russia to cease military action because it was hoped those with power will be hampered in their normal international business dealings.

“Dmitrii Ovsyannikov was a high-profile official who was appointed by President Vladimir Putin as the Governor of Sevastopol after Crimea was illegally annexed by Russia. He knew he had been on the UK sanctions list since 2017 but chose to ignore this.

“Another member of his family sought deliberately to breach the sanctions and showed complete disregard for the law.

“We hope this sends a clear message that the CPS and NCA investigators will work closely together to seek the convictions of sanction busters.

“We will start proceeds of crime proceedings to get back illegally obtained cash and assets.”