UK Sanctions on Russia: Are They Working and How Are They Affecting Sport?

What Sanctions Have Been Implemented?

The Russia (Sanctions) (EU Exit) (Amendment) Regulations 2023 were introduced to restrict Russia’s ability to finance its war. The UK has banned the import of Russian diamonds and gold, representing an estimated £4 billion loss to the Russian economy. It has also banned all Russian gas and oil imports. The International Energy Agency estimates that Russian oil and gas exports total £12 billion.

The UK has frozen assets belonging to Russia’s central bank and removed it from SWIFT, delaying oil and gas payments. The UK has also frozen assets of other Russian banks, and Russian firms are prohibited from borrowing money. Approximately £275 billion of Russia’s currency reserves have been cut off.

These measures have had mixed results. While the UK and Europe have imposed strict sanctions, Russia continues to export oil and gas to countries such as India and China at an estimated rate of 8.3 million barrels per day. This significantly offsets the impact of Western restrictions.

The UK’s response was rapid, with sanctions introduced within weeks of the invasion. However, sanctions against Russia are not new. The UK has imposed measures since 2014 following the annexation of Crimea, and some EU states have previously questioned their long-term effectiveness.

Sports Industry Updates

Sanctions have had notable consequences within the sports sector. The UK government sanctioned Roman Abramovich, former owner of Chelsea FC, resulting in the club operating under a special licence. Chelsea reported a £121 million loss in the 2021 to 2022 financial year, citing restrictions on ticket sales, event bookings and player contracts. The government allowed the club to continue playing due to its status as a cultural asset.

Other football clubs have also severed ties with Russian-linked businesses. Everton ended sponsorship deals connected to Alisher Usmanov. Manchester United terminated its partnership with Aeroflot. Football associations in England, Wales, Scotland and Ireland have suspended matches against Russia, and broadcasts of English and Scottish games have been halted.

Sanctions have affected other sports too. Russian racing driver Nikita Mazepin has launched legal action in the High Court to challenge sanctions that resulted in an asset freeze, a travel ban and the loss of his position with F1 Team Haas. The team also ended its sponsorship agreement with Uralkali.

The International Olympic Committee continues to uphold sanctions against Russia and Belarus. Government officials from both countries are barred from international sporting events, and no events will be hosted in either country. The IOC has not yet decided whether Russian athletes can compete as neutral participants at the 2024 Olympics. Ukraine’s Prime Minister Volodymyr Zelensky has argued that allowing Russian participation would imply acceptance of terror.

In tennis, Russian and Belarusian players, including Daniil Medvedev, were barred from Wimbledon. Novak Djokovic criticised the decision, stating that he does not believe the players contributed to the conflict.

Conclusion

The UK’s sanctions aim to pressure Russia into withdrawing its forces and to weaken its economic capacity to sustain the war. However, Russia’s economy has declined by only 2.7 per cent, suggesting that the sanctions have not fully achieved their intended effect. Instead, the measures appear to have disproportionately impacted individuals and organisations in sectors such as sport, rather than significantly reducing Russia’s ability to continue the conflict.