UK Launches Biggest Sanction Package on Anniversary of Ukraine Invasion

Russian LNG terminal with ship — The new sanctions including two of Russia's LNG terminals as well as the oil pipelines (Portovaya)

Timed to the fourth anniversary of the invasion of Ukraine, the UK announced what it is calling the biggest sanction package against Russia, going after key parts of the oil and gas industry. It comes, however, as the EU failed yesterday to move forward with a parallel effort that would have also blocked maritime services to the Russian oil fleet.

The new package, which is the largest since the early months of the war, is designed to further ratchet up pressure with nearly 300 new sanctions. It targets Russian energy revenues, including oil and gas exports, pipelines, terminals, traders, and other segments, including suppliers of military equipment and still more banks.

“The UK has today taken decisive action to disrupt the critical financing, military equipment, and revenue streams that sustain Russia’s aggression, in our largest raft of measures since the early months of the invasion,” said Foreign Secretary Yvette Cooper.

One of the most sweeping efforts goes after the network of dark web oil traders by sanctioning the 175 companies in the 2Rivers oil network. The UK calls it “one of the largest shadow fleet operators globally and a major trader of Russian crude oil.” It emerged out of the UAE-based Coral Energy after the U.S. and EU sanctioned Coral and is tied to a web of companies linked to the shipments of oil from Rosneft and others.

The sanctions also targeted PJSC Transneft, which the UK calls one of the world’s largest oil pipeline companies. It says the company is responsible for over 80 percent of Russia’s oil exports.

Also included in the latest round is the LNG industry, by adding two more ships as well as traders. It also listed Russia’s Portovaya and Vysotsk terminals responsible for exporting Russian LNG.

The UK added 48 oil tankers to the list of sanctioned vessels, bringing the UK to well over 600 vessels. In total, it reports that the sanctions cover more than 3,000 individuals, businesses, and ships.

The sanctions expand beyond the shipping and energy sectors to facilitators, including the New Zealand-based Maritime Mutual Insurance Association, which is reported to be a trader in the oil sector by insuring many shadow fleet tankers. A total of nine additional banks involved in cross-border payments were added, and also three civil nuclear energy companies. A total of 49 entities and individuals as international suppliers of technology, including components for Russian drones, are also on the new list.

The UK contends the sanctions are working, noting that Russia’s oil revenues are now at their lowest levels since 2020. It says the sanctions have deprived Russia of over $450 billion and forced it to raise taxes, including VAT and taxes on corporations.

It comes as the U.S.-led efforts at a peace deal hit new sticking points last week. Bloomberg reports that Donald Trump said they are close but stuck on one key issue. They report Trump said the goal is to have a deal by the U.S. Independence Day, July 4, holiday. Ukrainian President Volodymyr Zelenskyy continues to assert that Russia is dragging out the war while it bombs civilian targets and targets the energy infrastructure during the harsh winter in Ukraine to win more concessions in the negotiations.