The UK has declared that “Russian oil is off the market”, imposing sanctions on Rosneft and Lukoil

The British government on Wednesday imposed sanctions on Russia's two largest oil producers, Rosneft and Lukoil, four Chinese oil terminals and more than 40 "shadow fleet" tankers accused of helping Moscow transport sanctioned crude around the world.

London said Rosneft and Lukoil either benefit from the Russian government or support it through their business dealings, and called the new sanctions a "huge blow" to Russian President Vladimir Putin's war effort.

Rosneft and Lukoil together export 3.1 million barrels of oil per day.

In a statement, the British government said its “strongest sanctions to date” were aimed at “choking energy revenues” for Russia’s military budget. The restrictions on Rosneft and Lukoil include asset freezes, as well as director disqualifications and sanctions on trust services.

“We are sending a clear signal: Russian oil is off the market,” said Chancellor of the Exchequer Rachel Reeves.

London singled out Indian company Nayara Energy Limited, owned by Rosneft, which it said imported 100 million barrels of Russian crude oil worth more than $5 billion last year alone.

In total, the British government said it had imposed 90 new sanctions.

Rosneft CEO Igor Sechin and Lukoil CEO Vagit Alekperov have been under British sanctions since spring 2022.

The UK also said its measures were “tightening the net” around Moscow’s key military supply chains, hitting businesses that supply electronics for Russian drones in countries including China, India, Turkey, Thailand and Singapore.