UK Imposes Major Sanctions on Russian Oil Giants to Halt Energy Revenues Supporting War Efforts

On Wednesday, the British government enacted sanctions against Russia’s two leading oil firms, Rosneft and Lukoil, as well as four Chinese oil terminals and over 40 tankers from a “shadow fleet” suspected of assisting Moscow in transporting sanctioned crude oil globally.

Officials in London claimed that Rosneft and Lukoil were either profiting from or supporting the Russian government through their commercial activities, labeling the latest sanctions as a significant setback for Russian President Vladimir Putin’s military efforts.

Together, Rosneft and Lukoil export a combined total of 3.1 million barrels of oil each day.

In a press release, the British authorities announced that their “strongest sanctions to date” are designed to “cut off energy revenues” that are crucial for financing Russia’s military operations. The measures affecting Rosneft and Lukoil involve asset freezes, bans on company directors, and restrictions on trust services.

Chancellor of the Exchequer Rachel Reeves remarked, «We are delivering a clear message: Russian oil is not available in the market.»

Particular attention was given to Nayara Energy Limited, an Indian firm owned by Rosneft, which imported 100 million barrels of Russian crude worth over $5 billion in the previous year.

In total, the British government has imposed 90 new sanctions.

Both Igor Sechin, CEO of Rosneft, and Vagit Alekperov, CEO of Lukoil, have been under British sanctions since the spring of 2022.

The United Kingdom also announced that its actions “tighten the grip” around crucial military supply chains in Moscow by targeting businesses that provide electronic components for Russian drones in nations such as China, India, Turkey, Thailand, and Singapore.