UK Tightens Russian Oil Sanctions as U.S. Weighs Relief

Britain has expanded its sanctions against Russia’s oil industry, targeting two more energy companies, a dozen shadow-fleet tankers and financial networks used to move money around Western restrictions.

The measures, announced October 8 as part of a package of 38 sanctions targets, bring more than 90% of Russia’s oil production capacity under UK sanctions, according to the British government. The latest action also targets companies supplying equipment used in Russia’s missile and drone programs.

The sanctions come as London and Washington appear to be moving in different directions on Russian oil. The Trump administration is considering easing restrictions on sanctioned tankers in an effort to reduce record-high freight rates, Reuters reported Wednesday, while Britain is urging its allies to tighten restrictions on the shipping services supporting Russia’s oil trade.

At the center of the latest UK package are Russian oil companies Zarubezhneft and INK Capital. Their addition follows earlier sanctions against Russia’s largest oil producers, including Rosneft and Lukoil.

British officials say the broader coverage is intended not only to restrict Russian oil revenues but also to make it harder for sanctioned producers to sell crude through companies that have not yet been blacklisted.

The government’s claim that sanctions now cover more than 90% of Russian oil production capacity does not mean an equivalent share of production has stopped. Russian oil continues to reach international markets through trading and shipping networks that have adapted to Western restrictions.

The package also includes 12 shadow-fleet tankers previously reported by gCaptain, bringing Britain’s total number of sanctioned shadow-fleet oil tankers to more than 600.

Among the newly listed vessels is the 22-year-old product tanker Dakar, which was making a late-season voyage along Russia’s Northern Sea Route. The designation comes amid growing use of the Arctic shipping corridor by older and sanctioned vessels carrying Russian energy exports to Asian markets.

Britain is also targeting the financial infrastructure behind Russia’s sanctions evasion efforts. The package includes three cryptocurrency exchanges, two payment platforms and an individual linked to financial transactions, with several targets connected to Kyrgyzstan.

Two of the targeted platforms have processed transactions involving the Kremlin-backed A7 financial network, according to the UK Foreign Office. The network claimed to have moved more than $90 billion last year, an amount Britain said was equivalent to roughly half of Russia’s annual military spending.

Another 17 individuals and entities were sanctioned for their involvement in supplying goods that Western governments consider important to Russia’s military production. These include importers of machine tools, electronics and other components used to manufacture ballistic missiles and drones.

The UK said some suppliers have used third countries to conceal trade with Russia, highlighting the difficulty of restricting goods that can move through multiple intermediaries before reaching Russian manufacturers.

The widening sanctions campaign comes at a particularly difficult time for the global tanker market. Freight rates have surged as conflict in the Middle East disrupts shipping and raises demand for available vessels.

Washington is now weighing whether to allow previously sanctioned tankers to carry oil and petroleum products that are not themselves subject to U.S. sanctions. Such a move would require companies to obtain authorization from the U.S. Treasury Department, according to Reuters.

The U.S. Department of Energy has said any relief would not help Russia transport its oil. However, European and British restrictions would continue to apply independently, potentially limiting the ability of those vessels to obtain insurance and other shipping services.

Britain’s finance minister, John Healey, on Thursday called for tougher international restrictions on maritime services supporting Russia’s shadow fleet, underscoring the growing difference between the two countries’ approaches.

The discussions follow President Donald Trump’s decision to temporarily lift restrictions on Russian diesel, another measure aimed at easing pressure on global energy markets.

For shipping companies, the different approaches create an increasingly complicated sanctions environment. Even if Washington relaxes restrictions on some tankers, vessels and their commercial partners could remain subject to British and European measures.