UK Targets Oil Giant Transneft And 175 Firms In Largest Sanctions Package Since 2022

The United Kingdom has announced nearly 300 new sanctions against Russia, marking its largest package since the early months of the 2022 invasion of Ukraine.

The measures directly target Russian oil exports, the shadow fleet of tankers, major financial institutions and suppliers of military equipment.

The new measures represent the biggest sanctions action taken by the UK since the initial wave imposed in 2022.

According to the UK government, the sanctions are aimed at cutting off critical oil revenues and further degrading Moscow’s ability to finance its war.

So far, international sanctions are estimated to have deprived Russia of over $450 billion, an amount equivalent to nearly two additional years of war funding.

Russian oil revenues have now dropped to their lowest level since 2020. Since last year, Russia’s economy has stagnated while revenue streams have continued to decline.

The Kremlin has reportedly raised taxes, including VAT and corporation tax, to offset falling energy income.

A central target of the new package is PJSC Transneft, which transports more than 80% of Russia’s oil exports through its pipeline network.

By sanctioning Transneft, the UK aims to disrupt Russia’s primary oil export infrastructure and complicate efforts to secure buyers for sanctioned crude.

The UK has also sanctioned 175 companies linked to the 2Rivers oil network, one of the largest operators within Russia’s shadow fleet system.

The offshore network, previously known as Coral, expanded rapidly before facing pressure from UK and European Union sanctions imposed since 2024.

In addition, 48 oil tankers have been sanctioned for transporting Russian crude as part of efforts to bypass existing restrictions. Western banks, insurers and maritime service providers have increasingly avoided dealing with these vessels due to compliance risks.

Industry sources indicate that the sanctions have forced shadow fleet operators to:

• Pay significantly higher insurance premiums
• Use longer and less transparent shipping routes
• Accept reduced prices per barrel
• Face refusals from brokers, ports, refiners and storage operators
• These developments have increased transaction costs and tightened access to international maritime services.
• The latest measures extend beyond crude oil.

The UK sanctioned:

• 9 Russian banks that process cross-border payments supporting international trade
• 6 targets in Russia’s LNG sector, including ships, traders, and the Portovaya and Vysotsk LNG terminals
• 3 civil nuclear energy companies and 2 individuals involved in overseas nuclear projects
• 49 entities and individuals supplying components and technology used in Russian drones and weapons

By targeting LNG terminals and financial institutions, the UK is attempting to close alternative revenue streams that Russia has relied on to compensate for falling oil income.

Alongside sanctions, the UK announced over £30 million to strengthen Ukraine’s resilience following sustained winter strikes on civilian energy infrastructure.

• £25 million will fund repairs to damaged energy facilities
• £5 million will support accountability efforts for alleged war crimes

The UK government stated that more than 3,000 individuals, businesses and ships have now been sanctioned under its Russia regime.

Reference: UK Gov

Source: Maritime Shipping News