UK Imposes New Sanctions on Russian Oil Giants
For the first time, the UK and the US have directly sanctioned Gazprom Neft and PJSC Surgutneftegas, two Russian oil giants. These energy companies produce over 1 million barrels of oil per day between them – worth roughly $23 billion a year at current prices, more than the GDP of Jamaica. The profits from these two companies are lining Putin’s war chest and facilitating the war.
The UK’s decision to impose sanctions on these companies is part of its commitment to supporting Ukraine in its fight against Russian aggression. “Keeping the country safe is this government’s first priority and is an integral part of the Prime Minister’s Plan for Change,” said a government spokesperson. Every blow struck against Russia’s oil revenues is another step towards a just and sustainable peace in Ukraine, and a step towards security and prosperity in the UK and beyond.
Sanctions Aim to Drain Putin’s War Chest
Revenues from oil are vital to Russia’s war economy, making up roughly a quarter of Russia’s entire budget in 2023. By sanctioning these companies, Russia’s ability to generate revenues from energy sales is expected to be significantly curtailed. The sanctions will clamp down on Putin’s flow of revenues, draining his war chest and reducing the funds available for his military campaigns.
Foreign Secretary David Lammy emphasized the importance of targeting Russian oil companies: “Oil revenues are the lifeblood of Putin’s war economy. We will not stand by and let oil profits endanger the lives of Ukrainians – nor will we let Russia keep filling its coffers as it continues to threaten our collective security.”
UK Continues Pressure on Shadow Fleet
The UK has also continued to exert pressure on the shadow fleet, a term referring to the network of vessels used by Russia to transport oil covertly. Just last month, the Prime Minister announced sanctions on 20 more ships responsible for transporting more than 4 million barrels of Russian oil in 2024, taking the total number of shadow fleet vessels sanctioned by the UK to 93.
The UK’s efforts are part of a broader international effort to constrain Russia’s ability to generate revenue from its illegal invasion of Ukraine. The US has also imposed sanctions on Russian oil companies and individuals involved in the war effort.
Original Article: Support for Ukraine is unwavering as UK announces new sanctions on Russian oil giants — Gov