By Eniola Amadu
Britain has unveiled a sweeping package of new sanctions aimed at crippling Russia’s ability to finance its war in Ukraine, targeting the country’s two largest oil firms and its so-called “shadow fleet” of oil tankers.
The latest round of measures — totalling 90 new sanctions — also extends to a major Indian refinery and four Chinese oil terminals accused of helping move Russian crude onto global markets.
Chancellor Rachel Reeves said the move would deal a major blow to Moscow’s war economy.
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“We are sending a clear signal: Russian oil is off the market,” Reeves declared ahead of meetings in Washington DC with global finance ministers.
“We are significantly stepping up the pressure on Russia and Vladimir Putin’s war effort.”
The sanctions focus on Lukoil and Rosneft, Russia’s biggest oil producers, which together export more than 3.1 million barrels of oil per day.
Rosneft alone accounts for nearly half of all Russian oil output, equivalent to around 6% of global production.
Reeves said the government was also targeting 44 tankers operating within Russia’s “shadow fleet” — ships used to secretly transport sanctioned oil.
“At the same time, we are ramping up pressure on companies in third countries, including India and China, that continue to facilitate getting Russian oil onto global markets,” she said.
“There is no place for Russian oil on global markets and we will take whatever actions are necessary to destroy the capability of the Russian government to continue this illegal war in Ukraine.”
Among those hit is India’s Nayara Energy Limited, which imported an estimated 100 million barrels of Russian crude worth more than $5 billion (£3.75bn) in 2024.
The government said these imports directly helped sustain Russia’s military budget.
Foreign Secretary Yvette Cooper, announcing the measures jointly with Reeves, said: “Today’s action is another step towards a just and lasting peace in Ukraine, and towards a more secure United Kingdom.”
The announcement coincides with preparations by the G7 to explore a plan to seize proceeds from frozen Russian state assets — worth hundreds of billions — to support Ukraine’s defence and reconstruction.
Most of these assets are held in cash at the European Central Bank, following the maturity of Russia’s bond investments.
Although the EU had initially resisted such measures due to legal complications, it is now reportedly developing a framework to move forward, with discussions expected at an upcoming EU summit.
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Earlier this year, the UK joined the United States in sanctioning Russian energy firms Gazprom Neft and Surgutneftegas.
Then-Foreign Secretary David Lammy said the goal was to “drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.”
