LONDON: A former Russian minister and ally of President Vladimir Putin was found guilty of breaching sanctions along with his brother by a London court Wednesday, in the first such UK case.
Dmitrii Ovsiannikov, 48, was found guilty of six counts of evading sanctions between February 2023 and January 2024, becoming the first person to be convicted for breaching the United Kingdom’s Russia sanctions.
His brother Alexei Owsjanikow, 47, was convicted of two counts of breaching sanctions, while Dmitrii’s wife, Ekaterina Ovsiannikova, 47, was cleared of all charges by Southwark Crown Court.
The brothers are due to be sentenced at a later date.
The former minister breached restrictions imposed for his role in Russian-occupied Crimea by opening a UK bank account, receiving nearly £80,000 ($100,000) from his wife, and a car from his brother.
When the bank realized he was on the UK sanctions list, it froze the account.
Ovsiannikov was appointed by Putin as mayor of Crimea’s largest city, Sevastopol, two years after the peninsula’s annexation by Russia from Ukraine in 2014. He previously served as Russia’s deputy minister for industry and trade.
As a result, the European Union imposed financial sanctions on him in 2017, which the UK maintained after leaving the EU.
While the EU lifted its sanctions in February 2023, the UK ones still apply, banning him from traveling to and accessing funds in the country.
Ovsiannikov traveled from Russia to Turkiye in August 2022 and applied online for a UK passport, which was granted despite the sanctions, as his father was born in the UK.
He arrived in the UK to join his wife and two younger children in February 2023.
His brother was convicted for paying more than £40,000 in school fees for Ovsiannikov’s two youngest children to attend a school in London.
However, he was cleared of three counts of sanctions breach involving arranging car insurance for his brother and buying a Mercedes-Benz.
“We are resolutely committed to increasing pressure on Putin, his cronies, and all those who aid his barbaric war in Ukraine,” said Foreign Office sanctions minister Stephen Doughty.
Graeme Biggar, head of the National Crime Agency, said: “These convictions demonstrate not only that designated individuals are on our radar, but so are those who enable breaches of the regulations.”

WASHINGTON: Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised the tax rate on Chinese imports to 125 percent.
It was seemingly an attempt to narrow what had been an unprecedented trade war between the US and most of the world to a showdown between the US and China. The S&P 500 stock index jumped nearly 7 percent after the announcement, but the precise details of Trump’s plans to ease tariffs on non-China trade partners were not immediately clear.
Trump posted on Truth Social that because “more than 75 Countries” had reached out to the US government for trade talks and have not retaliated in meaningful way “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately.”
The 10 percent tariff was the baseline rate for most nations that went into effect on Saturday. It’s meaningfully lower than the 20 percent tariff that Trump had set for goods from the European Union, 24 percent on imports from Japan and 25 percent on products from South Korea. Still, 10 percent would represent an increase in the tariffs previously charged by the US government.
The announcement came after the global economy appeared to be in open rebellion against Trump’s tariffs as they took effect Wednesday, a signal that the US president was not immune from market pressures.
Business executives were warning of a potential recession caused by his policies, some of the top US trading partners are retaliating with their own import taxes and the stock market is quivering after days of decline.
White House press secretary Karoline Leavitt said the walk back was part of some grand negotiating strategy by Trump.
“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect the entire world is calling the United States of America, not China, because they need our markets.”
But market pressures had been building for weeks ahead of Trump’s move.
Particularly worrisome was that US government debt had lost some of its luster with investors, who usually treat Treasury notes as a safe haven when there’s economic turbulence. Government bond prices had been falling, pushing up the interest rate on the 10-year US Treasury note to 4.45 percent. That rate eased after Trump’s reversal.
Gennadiy Goldberg, head of US rates strategy at TD Securities, said before the announcement that markets wanted to see a truce in the trade disputes.
“Markets more broadly, not just the Treasury market, are looking for signs that a trade de-escalation is coming,” he said. “Absent any de-escalation, it’s going to be difficult for markets to stabilize.”
John Canavan, lead analyst at the consultancy Oxford Economics, noted that while Trump said he changed course due to possible negotiations, he had previously indicated that the tariffs would stay in place.
“There have been very mixed messages on whether there would be negotiations,” Canavan said. “Given what’s been going on with the markets, he realized the safest thing to do is negotiate and put things on pause.”
Presidents often receive undue credit or blame for the state of the US economy as their time in the White House is subject to financial and geopolitical forces beyond their direct control.
But by unilaterally imposing tariffs, Trump is exerting extraordinary influence over the flow of commerce, creating political risks and pulling the market in different directions based on his remarks and social media posts. There still appear to be 25 percent tariffs on autos, steel and aluminum, with more imports set to be tariffed in the weeks ahead.
On CNBC, Delta Air Lines CEO Ed Bastian said the administration was being less strategic than it was during Trump’s first term. His company had in January projected it would have its best financial year in history, only to scrap its expectations for 2025 due to the economic uncertainty.
“Trying to do it all at the same time has created chaos in terms of being able to make plans,” he said, noting that demand for air travel has weakened.
Before Trump’s reversal, economic forecasters say his second term has had a series of negative and cascading impacts that could put the country into a downturn.
“Simultaneous shocks to consumer sentiment, corporate confidence, trade, financial markets as well as to prices, new orders and the labor market will tip the economy into recession in the current quarter,” said Joe Brusuelas, chief economist at the consultancy RSM.
Treasury Secretary Scott Bessent has previously said it could take months to strike deals with countries on tariff rates, and the administration has not been clear on whether the baseline 10 percent tariffs imposed on most countries will stay in place. But in an appearance on “Mornings with Maria,” Bessent said the economy would “be back to firing on all cylinders” at a point in the “not too distant future.”
He said there has been an “overwhelming” response by “the countries who want to come and sit at the table rather than escalate.” Bessent mentioned Japan, South Korea, and India. “I will note that they are all around China. We have Vietnam coming today,” he said.
What’s not yet known is what Trump does with the rest of his tariff agenda. In a Tuesday night speech, he said taxes on imported drugs would happen soon.