ANNOUNCEMENT 04 May 2022
In May 2022, the UK government introduced an export ban on certain service exports to Russia.
NUMBER OF INTERVENTIONS
UK Foreign, Commonwealth and Development Office, Press Release, “Russia cut off from UK services”. Available at: https://www.gov.uk/government/news/russia-cut-off-from-uk-services
On 4 May 2022, the United Kingdom announced introducing a ban on the export of management consulting, accounting and PR services to Russia. The decision is taken in response to Russia’s invasion of Ukraine with the purpose of increasing the economic pressure on the Russian economy.
According to the announcement from the Foreign Commonwealth and Development Office of the UK, Russia is dependent on Western service companies to produce and export their manufactured goods. Accountancy, management consultancy, and PR services from the UK account for 10% of Russian imports in these sectors.
In this context, Business Secretary Kwasi Kwarteng said: “Our professional services exports are extraordinarily valuable to many countries, which is exactly why we’re locking Russia out. By restricting Russia’s access to our world-class management consultants, accountants and PR firms, we’re ratcheting up economic pressure on the Kremlin to change course.”