UK sanctions Russia's Lukoil and Rosneft, targets shadow fleet

Britain targeted Russia's two largest oil companies, Lukoil and Rosneft, and 44 shadow fleet tankers on Wednesday in what it described as a new bid to tighten energy sanctions and choke off Kremlin revenues.

Lukoil and Rosneft were designated under Britain's Russia sanctions laws for what London described as their role in supporting the Russian government.

They are subject to an asset freeze, director disqualification, transport restrictions, and a ban on British trust services.

“We are introducing targeted sanctions against the two biggest oil companies in Russia, Lukoil and Rosneft,” said Finance Minister Rachel Reeves during a visit to the United States.

The UK government described the firms as “strategically significant to the Kremlin,” saying their activities contribute to state revenues sustaining Russia’s war.

Reeves added that London is “ramping up pressure on companies in third countries, including India and China, that continue to facilitate the flow of Russian oil onto global markets.”

Russia's embassy in London said the sanctions would backfire by destabilising global energy markets and pushing up costs for British businesses and consumers.

"Contrary to the loud assurances of British leaders, these restrictions will not have any impact on the Russian foreign policy course," the embassy statement said.

The new sanctions target 51 ships, including 44 within the so-called shadow fleet, as well as individuals and entities across sectors including energy and defence.

The latest sanctions also include seven liquefied natural gas tankers and the Chinese Beihai LNG terminal, which has been importing cargoes from the sanctioned Russian Arctic LNG2 facility, Britain said.

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