UK slaps 90 sanctions on Russian firms, Nayara Energy to curb Kremlin funds

The UK government has imposed sanctions to cut Russian oil revenues, targeting Putin's war funding and aiming to block money flowing to the Kremlin

The UK government on Wednesday announced a fresh set of 90 sanctions targeting major Russian oil companies and Indian petroleum firm Nayara Energy Limited. The British authorities said Nayara had imported billions of dollars’ worth of Russian crude in 2024.

 

The Foreign, Commonwealth and Development Office (FCDO) said the measures, coordinated with the UK Treasury, aim to strike Russian President Vladimir Putin’s war funding. The sanctions are designed to reduce oil revenues reaching the Kremlin.

 

The UK government said these sanctions show its commitment to cutting off Putin’s revenue streams by targeting Russian companies and their global enablers.

 

 

Earlier sanctions against Nayara Energy

 

The sanctions hit four oil terminals in China, 44 “shadow fleet” tankers transporting Russian oil, and Nayara Energy Limited, which imported 100 million barrels of Russian crude worth over $5 billion in 2024.

 

Earlier, Nayara had faced European Union (EU) sanctions, which it strongly opposed.

 

“Nayara Energy operates in full compliance with the laws and regulations of India. As an Indian company, we are deeply committed to supporting the nation’s energy security and fostering economic growth,” the company said in a media statement.

 

The firm added, “Recently, Nayara Energy has come under international scrutiny, facing political pressures and the imposition of sanctions by the European Union which have no legal basis. We categorically state that this unilateral move by the European Union is founded on baseless assertions, representing an undue extension of authority that ignores both international law and the sovereignty of India.”   

 

Russian oil giants sanctioned

 

The new UK sanctions also target Russian oil giants Rosneft and Lukoil, two of the world’s largest energy firms. Together, they export 3.1 million barrels of oil per day. Rosneft alone accounts for six per cent of global oil production and nearly half of all Russian output.

 

UK Foreign Secretary Yvette Cooper, introducing the sanctions in Parliament, said, “At this critical moment for Ukraine, Europe is stepping up. Together, the UK and our allies are piling the pressure on Putin, going after his oil, gas and shadow fleet, and we will not relent until he abandons his failed war of conquest and gets serious about peace.”

 

Nayara Energy's Russia links

 

Nayara Energy is partly owned by Russia’s state-backed oil giant Rosneft with a 49.13 per cent stake. Another 49.13 per cent is owned by Kesani Enterprises, a group led by Italy’s Mareterra Group and Russia’s United Capital Partners.

 

The company operates around 6,600 retail fuel stations across India and runs the country’s third-largest oil refinery.

 

On July 18, the European Union imposed sanctions on Nayara Energy for dealing in Russian oil. The company was included in the EU’s 18th sanctions package targeting firms linked to Russia after its invasion of Ukraine in 2022.

 

Following the sanctions, Nayara temporarily halted exports for about two weeks. Its exports of clean products, including gasoline, gasoil, and jet fuel, dropped to roughly 80,000 barrels per day in August and September, down from about 138,000 bpd in January-July.   

 

  Following the sanctions, it was reported that Nayara is seeking help from the Indian government to source equipment and materials needed for refinery maintenance. European Union sanctions have made it difficult for the company to obtain specialised equipment, catalysts and other raw materials. The company had approached the Centre for High Technology, an advisory body under India’s oil ministry, for assistance.

 

Sanctions are also affecting Nayara’s shipping operations. Many shipping companies are terminating contracts, and insurance for voyages has become harder to secure.

 

Nayara is also facing hurdles in processing payments for crude oil imports. The company has approached Indian banks for support, Bloomberg reported last month. The government allowed state-run Uco Bank to handle trade payments for Nayara.