UK to exclude law from new services ban to Russia following Ukraine war
The UK has said it will ban the export of services including accountancy, consultancy and PR advice to Russia in the latest attempt to isolate the country’s economy following the invasion of Ukraine – but lawyers will still be able to service Russian clients.
The foreign secretary, Liz Truss, announced the “ban on services exports to Russia” in a press release on Wednesday. It is thought that the measures will not take effect for several weeks.
Russian oligarchs, many of whom own significant assets in London and the UK, have in the past employed a vast array of British accountants, consultants and public relations advisers to carry out legally required reporting duties as well as lobbying and managing their reputations.
The UK is one of the world’s leading providers of professional services such as accounting. The Foreign Office said British firms account for about 10% of Russian imports in accounting, management consultancy and PR advice.
However, any ban would for the most part formalise an exodus by big professional services companies that was completed weeks ago. The “big four” accountants that dominate the sector globally – Deloitte, EY, KPMG and PwC – had by 7 March all announced they would exit Russia, while other services companies have ditched wealthy Russian clients in part because of concerns for their own reputations.
Since well before the latest invasion of Ukraine there has been widespread support in parliament, including from Conservative party MPs, for measures to prevent London companies from being “enablers” to Russian companies that play an important role in supporting Vladimir Putin’s regime.
Yvette Cooper, the shadow home secretary, told parliament in March it was “shameful” that Russian companies could
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