UK imposes sanctions on Russia’s top oil firms, China LNG Terminal

By Omodele Adigun

The United Kingdom has announced a fresh round of sanctions targeting Russia’s biggest oil producers Rosneft PJSC and Lukoil PJSC — as well as a Chinese liquefied natural gas (LNG) terminal linked to Russian energy exports.

The Office of Financial Sanctions Implementation (OFSI) confirmed the measures on Wednesday, saying both Rosneft and Lukoil conduct business of “strategic significance” to the Russian government. Together, the two companies account for more than half of Russia’s total oil output.

The move is part of a broader effort by Western nations to tighten restrictions on Moscow’s energy sector and reduce the flow of revenue funding President Vladimir Putin’s war in Ukraine. Oil and gas taxes make up roughly one-quarter of Russia’s federal budget.

“We are sending a clear signal: Russian oil is off the market,” UK Chancellor Rachel Reeves said in a statement. “As Putin’s aggression intensifies, we are stepping up our response.”

In addition to the Russian oil giants, the UK also sanctioned China’s Beihai LNG terminal, which has received multiple shipments from Russia’s Arctic LNG 2 project since late August. Data from Bloomberg shows the terminal has handled at least nine such deliveries in recent weeks.

Analysts suggest China’s use of a single port to handle sanctioned Russian gas shipments may be a strategic move to shield its broader energy industry from Western penalties.

The UK sanctions list also includes India’s Nayara Energy Ltd., a major importer of Russian crude and part-owned by Rosneft. The refiner operates a 400,000-barrel-per-day facility in Vadinar, Gujarat, and accounts for about 8% of India’s refining capacity. The European Union has already sanctioned the company.

While UK sanctions may not carry the same global weight as those imposed by the United States, analysts say they still restrict access to London’s financial system — one of the world’s key hubs for energy financing and trade.