UK sanctions Indian firm Nayara over Russian crude

BRITISH government on Wednesday (15) announced 90 new sanctions targeting Russia’s oil infrastructure and India's Nayara Energy Limited, which it said imported billions of dollars' worth of Russian crude during 2024.

The Foreign, Commonwealth and Development Office (FCDO) confirmed the coordinated action with the UK Treasury is designed to strike at the heart of Russian president Vladimir Putin’s war funding by cutting off oil revenues reaching the Kremlin.

The government claimed the move will help take Russian oil "off the market" and choke off energy revenue that fuels the conflict in Ukraine.

“Today’s action demonstrates the government’s determination to cut off Putin’s revenue streams – targeting Russian companies and their global enablers,” the FCDO said.

The sanctions hit four oil terminals in China, 44 tankers in the 'shadow fleet' transporting Russian oil, and Nayara Energy Limited.

The Indian company was cited for importing 100 million barrels of Russian crude worth over $5 billion (£3.7bn) in 2024 alone.

Nayara Energy has faced international scrutiny previously, having been hit by European Union (EU) sanctions, which it strongly condemned.

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

The company categorically dismissed the EU's unilateral action as “founded on baseless assertions,” arguing it represented an “undue extension of authority that ignores both international law and the sovereignty of India.”

The new UK sanctions directly target Russian oil giants Rosneft and Lukoil. The two companies together export 3.1 million barrels of oil per day, with Rosneft reportedly responsible for six per cent of global and nearly half of all Russian oil production.

UK foreign secretary Yvette Cooper, introducing the sanctions, 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.”

Chancellor Rachel Reeves, attending the International Monetary Fund Annual Meetings in Washington DC, added: “We are sending a clear signal: Russian oil is off the market. The UK will continue to strip away the funding that fuels his war machine. We will hold to account all those enabling his illegal invasion of Ukraine.”

The action coincides with Russia's Energy Week in Moscow, and is aimed at undermining Putin’s attempts to sell his main funding stream to global partners.

To restrict the flow of funds further, the UK announced a ban on all imports of oil products refined in third countries from Russian-origin crude oil.

The government also noted that the latest set of sanctions targets eight specialised LNG tankers and the Chinese Beihai LNG terminal, as the Kremlin seeks to expand its liquefied natural gas (LNG) industry. Beihai has been importing LNG from Arctic LNG2, a disrupted Russian LNG project sanctioned by the UK in February 2024.

Sanctions also extend beyond the energy sector to cover Russia’s military supply chains, including businesses across Thailand, Singapore, Turkiye, and China, which are alleged to supply electronics critical for Russian drones and missiles used in the conflict.

(PTI)