Britain has intensified its sanctions against Russia’s oil sector, targeting two additional companies, a dozen shadow-fleet tankers, and financial networks that facilitate transactions around Western restrictions. Announced on October 8, this set of sanctions encompasses 38 targets and is designed to restrict more than 90% of Russia’s oil production capacity under UK sanctions. The measures also extend to suppliers of equipment used in Russia’s missile and drone programs.
This latest round of sanctions reflects a divergence in the approaches of London and Washington concerning Russian oil. While the Trump administration is considering easing restrictions on sanctioned tankers to alleviate high freight rates, the UK is advocating for tighter measures against shipping services that support Russia’s oil trade. Key new targets in the UK sanctions package include Russian oil companies Zarubezhneft and INK Capital, alongside previously sanctioned giants such as Rosneft and Lukoil.
The implications of these sanctions extend beyond oil revenue. They aim to complicate the ability of sanctioned producers to sell crude through unlisted companies. However, the claim that over 90% of Russia’s oil production capacity is sanctioned does not imply a halt in production, as Russian oil continues to find its way to international markets through adaptive trading networks. The latest package also includes numerous shadow-fleet tankers, alongside measures targeting the financial infrastructure that supports sanctions evasion, including cryptocurrency exchanges and payment platforms linked to transactions involving significant amounts of money that could bolster Russia’s military spending.
