Key takeaways
UK sanctions hit Russian oil and shipping
New measures restrict trade and shadow fleet operations.
Energy firms face tighter compliance obligations
Businesses must review contracts and supply chain exposure.
Proactive risk checks safeguard global partnerships
Early action helps avoid penalties and reputational harm.
On 15 October 2025, the UK Government announced that it had sanctioned Russia’s two largest oil companies, Rosneft and Lukoil. These two companies rank among the world’s biggest energy companies, and it is reported that together they export 3.1 million barrels of oil per day.
This follows on from the UK’s sanctioning of Gazprom Neft and Surgutneftegas, the third and fourth largest Russian oil companies, in January 2025.
These latest measures form part of 90 new sanctions announced by the UK Government that target Russia’s energy revenues. Also newly sanctioned are 44 tankers said to be in the Russian shadow fleet, as well as four oil terminals in China and an Indian refinery, Nayara Energy Ltd, that is said to have imported 100 million barrels of Russian crude oil worth US$ 5 billion in 2024 alone.
The UK has additionally sanctioned eight specialised LNG tankers and the Chinese Beihai LNG terminal. Beihai is said to have been importing LNG from Arctic LNG2 – the severely disrupted flagship Russian LNG project, sanctioned by the UK in February 2024.
The UK Chancellor, Rachel Reeves, stated that it was the intention of the UK Government to take Russian oil off the market. The Chancellor has further added that she will be lobbying global partners during finance meetings in Washington to cut off revenues reaching the Russian regime.
In the meantime, negotiations continue on the EU’s proposed 19th sanctions package against Russia which among other things includes prohibitions on Russian LNG as of January 2027, lifts remaining exemptions on Rosneft and Gazprom Neft and targets an additional 118 vessels in the shadow fleet.
It is expected that the European Council will make its decision in this regard at the end of October 2025. However, such decisions require unanimity from the 27 Member States, and it is reported that Hungary and Slovakia are at time of writing threatening to veto the decision.
For the moment, those affected by the latest UK sanctions should carefully consider their positions. The OFSI has published a General Licence – Russian Oil Majors Wind Down INT/2025/7539056 permitting a wind-down of transactions to 23:59 on 29 November 2025 and may be relevant in considering any existing transactions or the closing out of any positions.
