UK Government Sanctions Russia’s Top Oil Exporters

The UK government has directly sanctioned Russia’s two largest oil producers, Rosneft and Lukoil. 

This marks the first time the UK government has placed the country’s top crude exporters on its sanctions list, in a move designed to cut revenues that finance the invasion of Ukraine.

The measures form part of a wider package that includes sanctions on 44 vessels described as part of Russia’s “shadow fleet.” 

The sanctions target four Chinese oil terminals that receive Russian crude, and Nayara Energy Limited in India, a major purchaser and re‑exporter of Russian refined products. Nayara is reported to have bought about 100 million barrels of Russian oil in 2024.

“We are sending a clear signal: Russian oil is off the market,” said Chancellor Rachel Reeves, adding that the UK would “continue to strip away the funding that fuels his war machine” and “hold to account all those enabling his illegal invasion of Ukraine”.

The UK had earlier targeted Russia’s third and fourth‑largest producers, Gazprom Neft and Surgutneftegas, in January 2025. These latest steps escalate that pressure by aiming at the firms most central to Russian export capacity and state revenues.

The government also sanctioned the Beihai LNG terminal, the receiving point for shipments from Russia’s sanctioned Arctic LNG 2 project, and designated several LNG tankers linked to Russian exports as subject to restrictions.

UK sanctions impose asset freezes, director disqualification, transport restrictions and bans on certain UK trust services that together limit sanctioned entities’ access to Britain’s global financial and professional services.

While the UK measures carry real bite through financial‑services exclusion, their geographic reach is limited by sovereignty. Sanctions do not automatically bind foreign states, meaning the efficacy of measures depends on coordination with international partners and on obstructing channels that have been used to keep Russian oil flowing to global markets.

The UK government said the package of around 90 new sanctions is intended to “choke off” financing for the war and to close loopholes such as re‑export of refined products. It also signals its intent to step up enforcement and international engagement to deny Russia easy access to the global oil market.

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