Dmitrii Ovsiannikov, a former Russian governor appointed by President Vladimir Putin in the annexed region of Crimea, has been sentenced to 40 months in prison for violating UK sanctions. This marks the first such conviction under the Russia Regulations 2019.
Ovsiannikov, once the governor of Sevastopol, was found guilty of circumventing UK sanctions by having tens of thousands of pounds transferred into his newly opened Halifax Bank of Scotland (HBOS) account by his wife, Ekaterina Ovsiannikova, when he was prohibited from doing so. These actions, which took place between February 2023 and January 2024, came to light after a complex investigation by UK authorities.
At the time of the offence, Ovsiannikov was under an asset freeze that prohibited him from spending money, including on basic necessities. The sanctions, imposed after the European Union sanctions ceased to apply in the UK following Brexit, were intended to restrict individuals involved in the Russian government’s actions against Ukraine.
During his trial, it was revealed that Ovsiannikov had used his position as Sevastopol’s governor—a role appointed by Putin after Russia’s illegal annexation of Crimea in 2014—to carry out the transactions. The funds were transferred directly into his HBOS account, which was set up for this purpose. Although the total financial gain from the sanctions breach was relatively small—no more than £25,000 for each offence—the case set a significant precedent in terms of UK enforcement of international sanctions.
The jury convicted Ovsiannikov of six out of seven counts related to circumventing sanctions, and on Friday, Southwark Crown Court sentenced him to 40 months in prison for each count, to be served concurrently. However, Ovsiannikov’s sentence will be reduced by the 217 days he has already spent on curfew, and he is expected to serve up to half of his sentence in custody before being released on licence.
Ovsiannikov’s brother, Alexei Owsjanikow, 47, was also convicted of two counts of circumventing sanctions by paying school fees amounting to £41,027 for Ovsiannikov’s children. Owsjanikow was sentenced to 15 months in prison, which was suspended for the same duration, following the conviction. However, Ekaterina Ovsiannikova, Ovsiannikov’s wife, was acquitted of charges related to transferring £76,000 into her husband’s account.
In court, defence counsel for Ovsiannikov, Rosemary Davidson, argued that the impact of the conviction had extended beyond him, affecting his entire family. She highlighted that the media coverage of the case led to the family being “de-banked,” with their financial services revoked.
Mrs Justice Cockerill, who presided over the case, noted that while the ongoing Russia-Ukraine war had to be considered, it did not significantly affect the sentencing. She remarked that the offending was on the “simple and candid end of the scale,” with little attempt made to disguise the payments. Despite the limited financial gain, the seriousness of the offence, and its implications for the UK’s sanctions regime, led to a substantial prison sentence.
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Ovsiannikov had previously been appointed as Sevastopol’s governor in July 2016, two years after Russia’s annexation of Crimea, making him a significant political figure within Russia. The EU had designated Ovsiannikov under its sanctions in 2017, citing his role in undermining Ukraine’s sovereignty. Following Brexit, the UK continued to impose sanctions, keeping Ovsiannikov on its list of designated individuals.
Julius Capon from the Crown Prosecution Service (CPS) commented on the conviction, emphasising the importance of the sanctions regime in discouraging Russian military actions abroad. He stressed that this case was an example of how UK authorities are actively working to prosecute individuals who seek to bypass such sanctions.
The National Crime Agency (NCA) also hailed the verdict as a major success in combating criminal activity linked to Russian elites, with Graeme Biggar, the NCA’s director general, noting that over 180 disruptions had been made to curtail the activities of Putin-linked figures since the invasion of Ukraine.
As part of the sentencing, a confiscation hearing is scheduled for May 16, where the court will determine how to recover the assets gained through Ovsiannikov’s criminal activity.
