UK sanctions hit Thai firms over Russia war links
Businesses face scrutiny over ties breaching British foreign sanctions law
The UK has sanctioned four Thai companies for allegedly aiding Russia’s war in Ukraine, prompting Thai authorities to warn businesses of reputational risks.
Thailand’s Department of Foreign Trade (DFT), under the Ministry of Commerce, confirmed the development following an announcement by the UK Foreign, Commonwealth & Development Office (FCDO). The UK’s latest round of designations targeted 39 individuals and entities across several countries under the Russia (Sanctions) (EU Exit) Regulations 2019.
DFT Director-General Arada Fuangtong said her department is treating the matter with urgency and has summoned the four listed companies for discussions.
“We want to ensure they fully understand the implications of UK sanctions and the broader risks to both their operations and Thailand’s image.”
The DFT has also issued warnings to key Thai business organisations, including the Federation of Thai Industries (FTI), the Thai Chamber of Commerce, and the Thai National Shippers’ Council (TNSC). These groups have been urged to alert exporters to trade carefully, particularly with sensitive jurisdictions.
“The listing of Thai-registered companies inevitably affects Thailand’s image in the eyes of Western nations, which are crucial markets for Thai exports.”
While Thailand maintains a neutral stance on the Ukraine conflict, Arada stressed that neutrality does not shield Thai firms from being affected by the domestic laws of Western allies.
Under UK sanctions law, designated entities are prohibited from receiving trade, financial, or investment support from UK nationals, UK-registered firms, or any party with a “UK nexus.” Those listed face asset freezes and restrictions from UK-linked institutions, including banks, insurers, and logistics providers, according to The Star Malaysia.
Entities can be sanctioned for activities deemed supportive of Russia’s military efforts or actions that undermine Ukrainian sovereignty.
The development comes as Thailand continues to trade with both sides. In 2024, trade with the UK amounted to approximately US$6.51 billion (approximately 237 billion Thai baht), with Thailand enjoying a US$1.65 billion surplus.
Meanwhile, Thai trade with Russia totalled around US$1.55 billion in the same year.
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