Britain has ramped up its sanctions against Russia by targeting the country’s two biggest oil companies, Lukoil and Rosneft, along with 44 so-called shadow fleet tankers. The move aims to squeeze Moscow’s energy revenues, which support its ongoing war in Ukraine.
The new restrictions, announced on Wednesday, include freezing assets, banning British trust services, disqualifying company directors, and imposing transport limits on Lukoil and Rosneft. The British government sees these companies as key to Russia’s economy and crucial supporters of its government.
Finance Minister Rachel Reeves, speaking from the United States, made clear that Britain has no intention of allowing Russia to continue profiting from oil sales. She also highlighted plans to pressure companies in countries like India and China that help move Russian oil into global markets.
In addition to the Russian firms, Britain sanctioned the Chinese refiner Shandong Yulong Petrochemical and several port operators in the Shandong region. Yulong is a major Russian oil buyer with a large processing capacity, according to traders.
Other targets include seven liquefied natural gas (LNG) tankers and China’s Beihai LNG terminal, which imports from Russia’s Arctic LNG2 facility. The Indian refinery Nayara, partly owned by Rosneft and already sanctioned by the European Union, was also added to the list.
These measures are expected to reduce available shipping and insurance options for Russian oil exports. While some shipments to Asia still rely on British-based companies for transport and insurance, the new sanctions will push more Russian oil towards the shadow fleet. This fleet consists of older ships that operate outside Western insurance and regulatory systems to avoid sanctions.
Though the shadow fleet has over 1,500 vessels, several Indian and Chinese ports have reportedly refused to unload their cargoes, adding another hurdle for Russian oil trade. Britain, along with the U.S. and the EU, has targeted the shadow fleet repeatedly since Russia’s invasion of Ukraine in February 2022.
Russia’s embassy in London criticized the sanctions, saying they would disrupt global energy markets and hurt British businesses and consumers, but would not change Russia’s foreign policy.
For now, Britain remains firm on its stance, making it clear that it wants Russia out of global energy markets and will keep pushing to cut off funding for its war effort.