Sanctions update: June 2026

UK

On 16 June 2026, at the annual G7 summit, the UK Prime Minister announced a new sanctions package against Russia.

This included new sanctions directed at Russia’s shadow fleet, with 27 newly designated vessels that included 20 oil tankers. To date, the UK has sanctioned more than 600 shadow fleet and Russian LNG vessels.

The UK government statement also indicated that those suspected of enabling the sale of tankers to Russia’s shadow fleet would be exposed and face action. Any individual or entity thought to be enabling Russia’s illicit oil trade, including ship insurers and others providing shipping services, were also sanctioned.

In addition to the 27 targeted vessels, there were another 43 designations of entities and individuals. Some of these further measures were directed at third country suppliers of critical military equipment to Russia in China, Thailand and Turkey. Several organisations assisting Russia to bypass sanctions and move money were also targeted.

Sanctions were also announced against a company procuring western technology for Russia’s military as well as three companies and a number of Russian military intelligence officers suspected of acquiring military technology for Russia.

These latest sanctions follow on from other measures, announced by the UK on 26 May 2026, aimed at crypto networks and other illicit finance networks used to bypass sanctions. The 18 designations announced in May 2026 included the A7 network, a Kremlin-backed system used to bypass sanctions, finance military procurement and process funds from the sale of oil to fund the war in Ukraine. The designations also targeted individuals linked to A7.

The 26 May and 16 June 2026 measures reflect the UK’s determination to maintain the pressure on Russia in light of its actions against Ukraine. Some doubt was cast with regard to the UK’s stance when, on 20 May 2026, the UK Office of Trade Sanctions Implementation (OTSI) announced that it would be issuing general trade licenses for sanctioned processed oil products, thereby enabling the import into the UK of diesel and jet fuel that is derived from Russian crude oil but processed in other countries. This carve out was due to the pressure on oil and gas markets as a result of the Middle East conflict. However, the UK government emphasised that this was merely an attempt to mitigate damage to the UK economy that could result from further constraints on supply.

Indeed, the UK has continued to take a proactive stance towards those who breach, or are suspected of breaching, sanctions. On 17 June 2026, the OFSI imposed a £1 million fine on Sabre Global Technologies for continuing to provide Russian carrier Ural Airlines access to its global distribution system for seven months after UK sanctions were imposed on Russia in May 2022. Sabre provides software and services to travel companies. Sabre is reported to have tested alternative payment routes to bypass UK sanctions. This is said to be the largest penalty imposed by OFSI for a circumvention offence since the 2022 invasion of Ukraine.

Worth noting also is the first UK-led operation, on 14 June 2026, whereby a Russian shadow fleet vessel, SMYRTOS, was boarded by Royal Marine Commandos and law enforcement officers from the National Crime Agency. The enforcement action took place in international waters.

The vessel was provisionally moved to an anchorage off the south coast of England and the vessel’s Captain was arrested on suspicion of breaching sanctions. The vessel was carrying Russian crude oil worth about US$30 million to India. Two days before the vessel was seized, on 12 June 2026, the UK Office of Foreign Sanctions Implementation (OFSI) issued an interdiction General License permitting the necessary steps to be taken to enable the SMYRTOS operation.

EU

On 15 June 2026, the EU Council approved a ’mini’ package of sanctions against Russia that designated a further 34 individuals and 47 entities.

The listings included two individuals and 24 entities related to the shipment and export of crude oil or petroleum products from Russia, including through Russia’s shadow fleet. These listings covered Lukoil-Western Siberia and numerous companies based in Russia, Liberia, Turkey, United Arab Emirates, Azerbaijan and Hong Kong.

The measures also targeted several manufacturers and suppliers of drones and other military equipment to the Russian armed forces for use in the war against Ukraine.

The EU also decided to renew the restrictive measures in response to the illegal annexation of Crimea and Sevastopol and to extend these measures to 23 June 2027.

This mini sanctions package is separate to a proposed 21st sanctions package, announced on 9 June 2026. Those proposals are awaiting approval but, in their current form, they include listing an additional 32 vessels on top of the 632 vessels that are already sanctioned. For the first time, the EU is targeting vessels that assist the shadow fleet by providing bunkering and other services. There are also proposals targeting critical infrastructure such as ports, airports, refineries trading or processing Russian oil. Additionally, there are proposed restrictions on the sale of LNG tankers to Russia.

Financial and crypto restrictions are also expanded: an additional 31 Russian banks; 20 banks, crypto firms or platforms and oil traders in third countries that have serviced sanctioned Russian entities and individuals; and a potential third country ban for crypto-asset services.

There are also proposed new export restrictions on items and technologies used by Russia’s military industry, for example metals and alloys used in the aerospace and defence sectors, and a proposed new import ban on a number of goods, including certain metals, metal ores or car parts.

The proposed package will be aligned with trade restrictions on Belarus so that it cannot serve as a backdoor for Russian trade.

Our Sanctions team advises on complex, multi-jurisdictional sanctions issues. Please get in touch to discuss how we can support you.