UK sanctions target Russian energy revenues

UK sanctions target Russian energy revenues

UK Sanctions Target Russian Energy Revenues Amid Global Pressure

On October 15, 2025, the UK expanded sanctions against Russia’s energy sector, directly targeting Rosneft and Lukoil—its two largest oil producers—to disrupt funding for the invasion of Ukraine. The measures, announced by Foreign Secretary Yvette Cooper, include 90 designations, including 51 ships in the "shadow fleet" evading price caps on Russian oil. These actions align with broader international efforts to isolate Moscow's energy revenues, which account for a significant portion of its war budget.

The UK's Office of Financial Sanctions Implementation (OFSI) reported that £28.7 billion in Russian assets have been frozen since February 2022 under the Russia Sanctions Regime. Recent sanctions prohibit UK entities from dealing with Rosneft and Lukoil, which together export 3.1 million barrels of oil daily. Additionally, the UK banned imports of oil products refined in third countries using Russian crude, further tightening restrictions on circumvention routes.

The EU and US have similarly intensified measures, including an EU ban on Russian LNG imports and targeted sanctions against energy infrastructure. The EU's sanctions envoy, David O'Sullivan, noted that while Russia's war economy has distorted its civil economy, circumvention efforts—particularly via China and shadow fleets—remain challenges. Over 500 EU-sanctioned vessels are now blocked from operating, and flag states have been pressured to withdraw support for sanctioned tankers.

The UK also sanctioned Chinese entities, including the Beihai LNG terminal, to curb Russia's pivot to alternative energy markets. These actions reflect a coordinated strategy to limit Moscow's ability to monetize its resources. However, Russia's federal budget revenues from oil and gas fell to their lowest level since July 2020 in January 2026, signaling growing economic strain.

While sanctions have not fully halted Russian military operations, they have significantly constrained its financial flexibility. O'Sullivan emphasized that sustained international pressure could render Russia's war economy unsustainable, though challenges persist in enforcing compliance globally.

UK sanctions freeze £28.7 billion in Russian assets since 2022.
EU sanctions envoy highlights economic strain on Russia's war economy.
UK targets Rosneft, Lukoil, and shadow fleet to cut energy revenues.