UK sanctions Russia’s oil giants over Ukraine war

Britain is targeting Russia’s biggest oil companies and the country’s “shadow fleet” of oil tankers in a bid to cut off Vladimir Putin’s ability to finance the war in Ukraine.

The UK government is also pursuing a major Indian oil refinery and four oil terminals in China with a package of 90 new sanctions.

Chancellor Rachel Reeves said the move is expected to have a significant impact on Russia’s economy and its ability to maintain military operations in Ukraine.

Speaking before a meeting with global counterparts in Washington DC to discuss Russian sanctions, Obama said, “We are sending a clear signal: Russian oil is off the market.” he said.

Reeves said the government had “significantly increased the pressure on Russia and Vladimir Putin’s war effort.”

Speaking on the sidelines of the International Monetary Fund (IMF) annual meeting, Reeves said that Russia’s two largest oil companies, Lukoil and Rosneft, would be subject to sanctions.

IMF is an international organization with 190 member countries. They work together to maintain global economic stability.

“At the same time, we are increasing pressure on companies in third countries, including India and China, that continue to facilitate Russian oil reaching global markets,” Ms. Reeves said.

“Russian oil has no place on global markets, and we will do whatever it takes to eliminate the Russian government’s ability to continue this illegal war in Ukraine.”

In a joint statement with Secretary of State Yvette Cooper, Reeves said the government had also imposed sanctions on 44 tankers operating in Russia’s “shadow fleet” carrying oil around the world.

Two Russian oil companies export 3.1 million barrels of oil per day. According to the government, Rosneft is responsible for almost half of Russian oil production, which accounts for 6% of global production.

The sanctions list also includes India’s Nayara Energy Limited, which the government says has imported 100 million barrels of Russian crude worth more than $5bn (£3.75bn) in 2024 alone.

Cooper said: “Today’s action is another step towards a just and lasting peace in Ukraine and a safer UK.”

The announcement comes as the G7, a group of some of the world’s most developed economies, prepares to consider a plan to effectively seize hundreds of billions of dollars in Russian investments that have been frozen since the invasion of Ukraine.

The bulk of Russia’s assets are held in cash at the European Central Bank after underlying bond investments mature.

The European Union (EU), where most of the funds are held, has been reluctant to pursue the broader plan but appears to be developing a way around legal concerns. It will be discussed at the EU summit next week.

While the war continues, Ukraine has significant financial needs for both armament and reconstruction.

Earlier this year, UK joins US on direct sanctions energy companies Gazprom Neft and Surgutneftegas.

At the time, Foreign Secretary David Lammy said this would “empty Russia’s war chest and every ruble we take from Putin’s hands will help save Ukrainian lives.”

The United States has separately discussed imposing additional tariffs of up to 500% on goods from China tied to Beijing’s purchases of Russian oil.

But Treasury Secretary Scott Bessent said Wednesday that the United States would not take that step unless Europe agreed to do something similar.

“We will respond if our European partners join us,” he said.