The United Kingdom has implemented a significant expansion of its sanctions regime against Russia, focusing on key players in the global oil trade. This latest round of measures includes India’s Nayara Energy Limited, along with oil terminals in China and numerous Russian crude carriers, aiming to further isolate Moscow financially.
British authorities stated that the objective of these new sanctions is to curtail President Vladimir Putin’s access to funds that finance the ongoing war in Ukraine. The Foreign, Commonwealth and Development Office (FCDO) explicitly mentioned that the sanctions target the “core” of Russia’s war funding. “Today’s step shows the government’s full commitment to cutting off Putin’s revenue streams, including Russian companies and their global enablers,” the FCDO communicated.
Nayara Energy, a major Indian private refiner operating over 6,500 fuel stations and holding a significant 7-8% share of the domestic retail market, is now subject to these restrictions. The UK government alleges that Nayara Energy imported 100 million barrels of Russian oil in 2024, a deal reportedly worth over $5 billion. The sanctions also target 44 Russian crude carriers and four oil terminals located in China.
Furthermore, companies in Thailand, Singapore, and Turkey have been penalized for allegedly supplying electronic components crucial for Russia’s military apparatus, including drones and missiles utilized in the conflict. This broadens the network of entities being targeted for their role in supporting Russia’s war efforts.
The direct impact of these sanctions is expected to be felt by leading Russian oil giants such as Rosneft and Lukoil. According to UK government assessments, Rosneft is responsible for approximately half of Russia’s total oil output and commands a 6% share of the global production.
In a statement to Parliament, UK Secretary of State for Foreign and Commonwealth Affairs Yvette Cooper reinforced the international commitment to this strategy. “Europe is increasing pressure at this crucial time. The United Kingdom and our allies are acting on Putin’s oil, gas and shadow fleet. We will not relent until he abandons his war efforts,” Cooper announced.
These sanctions arrive during Russia’s Energy Week, a period when Russia actively seeks to expand its energy exports to non-Western markets. The FCDO indicated that the sanctions are designed to impede Moscow’s efforts to establish new oil and gas markets. The restrictions also extend to refined oil products derived from Russian crude that have been processed in third-party countries.
Nayara Energy, operator of India’s second-largest private refinery, issued a statement asserting its strict compliance with Indian laws and regulations. The company has previously criticized previous European Union sanctions as “unjust” and an infringement on India’s sovereignty.