The United Kingdom is implementing new sanctions targeting Russia’s major oil companies and its network of oil tankers, referred to as the “shadow fleet,” as part of efforts to limit funding for the war in Ukraine. The government is also focusing on an Indian oil refinery and several Chinese oil terminals in a broader set of 90 sanctions.
Chancellor Rachel Reeves indicated that these measures are expected to affect the Russian economy significantly and hinder its military operations in Ukraine. Reeves stated that the UK is sending a message that Russian oil is no longer welcome in the market, and she emphasized the need to increase pressure on Russia and its support for military activities.
Specifically, the sanctions will impact Russia’s two largest oil firms, Lukoil and Rosneft, which together export approximately 3.1 million barrels of oil per day. Rosneft alone accounts for nearly half of Russia’s oil production, which comprises about 6% of the global oil supply. Among those targeted is India’s Nayara Energy Limited, noted for its import of 100 million barrels of Russian crude oil in 2024, valued at more than $5 billion.
In conjunction with these sanctions, the UK government is penalizing 44 tankers linked to Russia’s shadow fleet. The announcement follows discussions among G7 countries about the potential for seizing Russian investments that have been frozen since the invasion of Ukraine. Most of these assets are held in cash at the European Central Bank.
Ukraine faces ongoing financial demands amid the conflict, necessitating funding for military resources and reconstruction efforts. Earlier sanctions from the UK targeted other Russian energy companies, highlighting a continued effort to weaken the financial backbone of Russia’s military actions.
Source: https://www.bbc.com/news/articles/cew418r5rxdo?at_medium=RSS&at_campaign=rss