The British government on Wednesday sanctioned Russia's two largest oil companies, Lukoil and Rosneft, and 51 shadow fleet tankers in what it described as a new bid to assert more pressure on Kremlin revenues.
Lukoil and Rosneft were designated under the U.K.'s Russia sanctions laws for what Britain described as their role in supporting the Russian government. They are subject to an asset freeze, director disqualification, transport restrictions, and a ban on U.K. trust services.
The two companies are considered strategically significant to the Kremlin, the government said, adding that their activities are of economic importance to Russia, contributing to state revenues that help sustain its war in Ukraine.
"We are introducing targeted sanctions against the two biggest oil companies in Russia, Lukoil and Rosneft," Britain's Treasury chief Rachel Reeves told reporters while on a trip in the U.S.
"At the same time, we are ramping up pressure on companies in third countries, including India and China, that continue to facilitate getting Russian oil onto global markets."
Reeves said there was "no place for Russia in global markets" and that Britain would take all necessary steps to stop Moscow from funding its war in Ukraine.
Lukoil did not reply to a request for comment. Rosneft was not immediately available for comment.
The new sanctions target 51 ships, including 44 within the shadow fleet, as well as individuals and entities across sectors, including energy and defense.
Last month, U.S. Treasury Secretary Scott Bessent said the U.S. would be willing to work with European countries to consider steeper sanctions on Russian entities, including Rosneft and Lukoil.
Rosneft is Russia's leading oil producer, accounting for around 40% of the country's total output, and Lukoil the second-biggest and with the largest foreign exposure among its domestic peers.
The shadow fleet has increasingly been the target of sanctions from Britain, the U.S. and the European Union since Russia's invasion of Ukraine in February 2022.
It is a network of older tankers that officials say are used to avoid sanctions on Russian oil.
Russia's embassy in London did not immediately respond to a request for comment.
