The Treasury is considering changes to the process that allowed the caput of Russia's Wagner radical to get astir UK sanctions and writer a UK journalist.
Investigative newsman Eliot Higgins faced enactment by Yevgeny Prigozhin - whose Wagner mercenaries are warring for Russia successful Ukraine - successful precocious 2021.
OpenDemocracy reported the UK issued peculiar licences truthful helium could override sanctions and wage his ineligible fees.
The lawsuit was dropped erstwhile helium admitted his ties to the notorious backstage army.
Mr Prigozhin was archetypal sanctioned by the UK successful 2020 successful a bid to halt anyone doing concern with him.
But nether a UK instrumentality defining the Russian authorisation regime, provisions let sanctioned radical to screen their "basic needs", including the quality to use for a licence to wage for ineligible fees.
Decisions are taken by the Office for Financial Sanctions Implementation, a section successful the Treasury which reviews applications by radical placed nether fiscal measures.
Mr Prigozhin successfully utilized this way to enlist the assistance of Discreet Law, a London-based instrumentality firm, successful bid to instrumentality enactment against Mr Higgins, reported Open Democracy, a UK website that focuses connected quality rights.
Treasury curate James Cartlidge told MPs connected Wednesday that the guidance for these exemptions was "longstanding" - but said the authorities "is present considering whether this attack is the close 1 and if changes tin beryllium made".
A Treasury spokesperson besides said these applications are reviewed by officials with nary governmental engagement - with Mr Cartlidge aboriginal telling the Commons "we are not alert of immoderate determination being taken by a minister".
Shortly earlier the ineligible lawsuit was brought, Mr Higgins's website Bellingcat had precocious published a communicative naming businessman Mr Prigozhin - an state of Vladimir Putin - arsenic the antheral down the Wagner Group.
He denied engagement until aft the February 2022 penetration began, contempt having already been sanctioned by the UK authorities implicit the group's activities successful Libya successful October 2020.
The writer was personally sued successful the UK for tweeting articles by his work and different outlets. He believes the determination to people him alternatively than Bellingcat was designed to intimidate.
Speaking to the BBC, Mr Higgins called for greater transparency astir however the rules are applied. He said helium was near with £70,000 successful ineligible costs contempt the lawsuit being dropped.
He said: "For maine the question is, 'What is the process?' No 1 seems to afloat recognize that. Until determination has been much transparency we can't marque a judgement astir if it was applied correctly.
"Then the adjacent question is, 'Do we privation this benignant of process successful spot wherever journalists tin beryllium sued?'"
He added: "How bash I cognize immoderate different oligarch isn't going to bash the aforesaid happening again to maine adjacent week? This clip the costs were 5 figures but it mightiness beryllium 5 oregon six figures adjacent time."
Mr Prigozhin has been sanctioned by the UK, European Union and US. He has been accused of interfering successful overseas elections by Western governments utilizing online "troll farms".
The 61-year-old roseate from an obscure inheritance moving arsenic a blistery canine thoroughfare vendor and serving clip successful situation for robbery earlier going connected to go a cardinal Putin ally.
His lucrative catering contracts with the Kremlin earned him the nickname "Putin's chef".
The Wagner Group has been accused of committing atrocities successful Ukraine and was involved successful the caller cognition to seizure the municipality of Soledar.
The authorities confirmed it was conducting an interior reappraisal of the process aft Labour was granted an urgent question successful the Commons connected Wednesday.
Shadow overseas caput David Lammy said "the authorities appears to person granted a waiver for a warlord that enabled him to motorboat a ineligible onslaught connected a British journalist".
He described Mr Prigozhin arsenic "one the astir unsafe and noxious members of Putin's interior circle" and said it would beryllium "absolutely unconscionable" if the Treasury played a relation successful "alleviating pressure" connected the Wagner Group.
Mr Lammy besides pointed retired that Mr Sunak was chancellor astatine the clip the exertion was granted by the Treasury office.
Decisions connected specified waivers are made "on a costs basis", Mr Cartlidge said, and that it was up to the courts to determine connected the "substantive merits of the lawsuit alternatively than the government".
He added: "However I tin corroborate that successful airy of caller cases and successful narration to this question, the Treasury is present considering whether this attack is the close 1 and if changes tin beryllium made without the Treasury assuming unacceptable ineligible risks and ensuring that we adhere to the regularisation of law."
Mr Cartlidge defended the government's grounds connected sanctions and said ministers were committed to cracking down connected individuals who usage "threatening tactics to soundless escaped code advocates who enactment successful the nationalist interest".
A Treasury spokesperson declined to remark connected the idiosyncratic case, adding: "Everyone has a close to ineligible practice and the Office for Financial Sanctions Implementation assistance licences to let sanctioned radical to screen their ain ineligible fees, provided the costs are reasonable."
Roger Gherson of Discreet Law told the Financial Times connected Monday the steadfast had "at each times complied afloat with their ineligible and nonrecreational obligations". The BBC has contacted them for further comment.