UK sanctions Russian oil giants and ‘shadow fleet’ in new crackdown

The UK announced sweeping new sanctions aimed at crippling Russian energy revenues, targeting the country’s largest oil producers, state-linked tankers, and external partners who help keep Russian crude flowing to global markets.

The sanctions package, unveiled by British Chancellor Rachel Reeves ahead of her meetings with global finance leaders in Washington, DC, includes 90 new measures and represents one of the most aggressive British efforts yet to pressure Vladimir Putin’s wartime economy.

“We are sending a clear signal: Russian oil is off the market,” Reeves said, vowing to “significantly intensify pressure on Russia and Vladimir Putin’s war effort.”

The sanctions hit Rosneft and Lukoil, Russia’s two largest oil producers, which together export nearly 3.1 million barrels of oil per day — about 6% of global supply, according to the Treasury Department.

Rosneft, the larger of the two companies, accounts for nearly half of Russia’s total oil production and is a major source of foreign currency for Moscow.

The UK is also blacklisting 44 tankers linked to Russia’s so-called “shadow fleet” – vessels used to transport oil under murky ownership structures to evade existing Western sanctions.

Reeves said the move was aimed at “destroying the Russian government’s ability to continue this illegal war in Ukraine.”

In a significant expansion of the UK sanctions regime, the list also includes entities based in India and China accused of helping to direct Russian crude to global markets.

Among them is Nayara Energy Limited, one of India’s largest private refiners, which is partly owned by Rosneft. The UK government said the company imported 100 million barrels of Russian oil worth more than $5 billion (£3.75 billion) in 2024 alone.

“We are ramping up pressure on companies in third countries, including India and China, that continue to facilitate access for Russian oil to global markets,” Reeves said.

Beijing and Delhi have become major destinations for Russian oil exports since Western countries imposed G7 price caps and banned seaborne imports of Russian crude in 2022.

Reeves made the announcement alongside Secretary of State Yvette Cooper on the sidelines of the International Monetary Fund’s annual meetings, where discussions with his G7 counterparts focused on tightening sanctions and exploring ways to use frozen Russian assets to support Ukraine.

“Today’s action is another step toward a just and lasting peace in Ukraine, and toward a safer United Kingdom,” Cooper said.

The G7 is expected to discuss a proposal next week to confiscate profits generated from hundreds of billions in frozen Russian investments, most of which are held in cash at the European Central Bank. The European Union – which has long been hesitant about the potential legal implications – is said to be developing a mechanism to redirect those funds to Ukraine.

Earlier this year, the UK joined the US in imposing sanctions on Gazprom Neft and Surgutneftegas, expanding restrictions to include almost all of Russia’s major energy producers. At the time, then-Foreign Secretary David Lammy said the measures would “drain Russia’s war chests – and every ruble we take from Putin’s hands helps save Ukrainian lives.”

The latest round intensifies pressure not only on Moscow, but also on countries that continue to buy Russian crude at reduced prices.

In Washington, US Treasury Secretary Scott Besent confirmed that the White House was considering imposing tariffs of up to 500% on Chinese goods linked to Russian oil purchases – although he added that the United States would not act unless “our European partners join us.”

“We will respond if our European partners join us,” Besant told reporters on Wednesday.

The UK sanctions come as the International Monetary Fund warns of slowing global growth and increasing geopolitical division – with the war in Ukraine, the conflict between Israel and Gaza, and trade tensions between the US and China weighing on economic stability.