RE: watcher22 Nov 2022 16:07
UK Government attitude towards our losses in Petropavlovsk PLC.
HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ Mary Glindon MP House of Commons London SW1A 0AA 18 November 2022 Dear Mary, Thank you for your email of 19 August to the former Prime Minister, enclosing correspondence from your constituent, Peter ****, of North Shields, Tyneside about Russian sanctions. Your email has been passed to HM Treasury and I am replying as the Minister responsible for this policy area. I am sorry to hear of the circumstances your constituent is facing in light of sanctions imposed against Petropavlovsk PLC. When imposing sanctions on businesses and individuals, the Government always considers how any impact to the UK can be mitigated, as we seek to ensure that sanctions measures are carefully targeted and avoid unintended consequences. If Mr Peter would like to read more about the Government’s approach to financial sanctions, HM Treasury’s Office of Financial Sanctions Implementation (OFSI) has published a guide which can be found at www.gov.uk/ofsi. The Government recognises that sanctions can often have financial consequences not only for individuals and companies which are designated under UK law, but also for those who invest in or conduct business with them. Regrettably, while effective sanctions will often involve some economic cost, the cost of failing to take strong action against aggressive Russian behaviour in Ukraine would be far higher. All investments are prone to volatility and in particular may be affected when they are undertaken in areas with increased risk. I appreciate the understanding Mr P has shown of the purpose that sits behind these sanctions, although I am sure this is of little comfort in his circumstances. In the case of Petropavlovsk PLC, I understand that the effect of the sanctions was for the company’s creditors to call in its debt. Arrangements for the administration of the company and the sale of its assets were handled by professional administrators in accordance with the UK’s insolvency law, and approved by the High Court at a hearing in July this year. Details of the Court’s decision, with a link to the full judgement are available from the administrators on the company’s website at: https://petropavlovskplc.com/administration-news Unfortunately, the Government is not able to protect individual and commercial investments which may be affected by the development of geopolitical events such as these. Individuals must undertake their own due diligence when it comes to investing and managing investments, based on their appetite for risk. I hope you will understand that the Government is not able to provide compensation from public funds for private investors who have suffered losses on their investments in circumstances such as these, nor to provide assistance with any compensation claims they may wish to bring against others. Please thank Mr Pieri for taking the trouble to write with the details his case. Kind regards,
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