UK Targets Russian Oil Giants with Sweeping Sanctions Package

The United Kingdom announced 90 new sanctions targeting Russia’s energy sector, directly hitting oil giants Rosneft and Lukoil in an effort to cut off funding for the Kremlin’s military operations in Ukraine.

The sanctions strike at two of the world’s largest energy companies, which together export 3.1 million barrels of oil per day. Rosneft alone is responsible for 6% of global oil production and nearly half of all Russian oil production. The UK has now sanctioned the four largest Russian oil majors, having previously targeted Gazprom Neft and Surgutneftegas in January 2025.

Foreign Secretary Yvette Cooper announced the measures in Parliament, stating: “At this critical moment for Ukraine, Europe is stepping up. Together, the UK and our allies are piling the pressure on Putin – going after his oil, gas and shadow fleet – and we will not relent until he abandons his failed war of conquest and gets serious about peace.”

The sanctions package extends beyond the oil majors to include four oil terminals in China, 44 tankers in the shadow fleet transporting Russian oil, and Nayara Energy Limited, which imported 100 million barrels of Russian crude worth over $5 billion in 2024 alone.

Chancellor Rachel Reeves, speaking from Washington DC where she attended International Monetary Fund Annual Meetings, reinforced the government’s position: “We are sending a clear signal: Russian oil is off the market. As Putin’s aggression intensifies, we are stepping up our response. The UK will continue to strip away the funding that fuels his war machine.”

The timing of the announcement coincides with Putin hosting Russian Energy Week in Moscow, undermining his efforts to pitch the country’s energy sector to international buyers.

UK Strikes at Russia’s Arctic LNG 2 Lifeline with Sanctions on China’s Beihai Terminal

The UK also targeted Russia’s liquified natural gas sector, sanctioning seven specialized LNG tankers and the Chinese Beihai LNG terminal. The terminal has been importing LNG from Arctic LNG2, a flagship Russian LNG project that was sanctioned by the UK in February 2024. The measures include a ban on imports of oil products refined in third countries from Russian-origin crude oil.

Beyond energy, the sanctions hit businesses across Thailand, Singapore, Turkey, and China that supply electronics critical for Russian drones and missiles.

The action com es as new data shows UK sanctions have frozen £28.7 billion of Russian assets since February 2022.The UK has delivered more than 85,000 military drones to Ukraine in the first six months of this year, with £600 million invested by the UK government.

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