The United Kingdom has tightened its economic sanctions against Russia, specifically targeting companies facilitating the country’s oil trade. In a significant development, India’s private refiner, Nayara Energy Limited, has been added to the sanctions list by the British government, which aims to restrict President Vladimir Putin’s financial resources fueling the war in Ukraine.
Nayara Energy, a dominant force in India’s retail fuel market with a network of over 6,500 stations and an 7-8% market share, now finds itself under UK sanctions. The Foreign, Commonwealth and Development Office (FCDO) asserted that these measures are directed at the “core” of Russia’s war funding mechanisms. “Today’s step shows the government’s full commitment to cutting off Putin’s revenue streams, including Russian companies and their global enablers,” the FCDO stated.
The newly designated entities include four oil terminals in China, a fleet of 44 Russian crude carriers, and Nayara Energy. The UK government has accused the Indian refiner of importing a substantial 100 million barrels of Russian oil in 2024, valued at over $5 billion. This move highlights the global reach of the UK’s efforts to isolate Russia economically.
In addition to Indian and Russian entities, companies based in Thailand, Singapore, and Turkey have also been sanctioned. The UK alleges these firms supplied essential electronic components used in Russia’s military operations, including drones and missiles deployed against Ukraine.
The sanctions are poised to directly impact major Russian oil companies, Rosneft and Lukoil. Official figures released by the UK government indicate that Rosneft controls nearly half of Russia’s oil output and accounts for 6% of global oil production.
Yvette Cooper, the UK Secretary of State for Foreign and Commonwealth Affairs, addressed the Parliament, emphasizing the coordinated international effort. “Europe is increasing pressure at this crucial time. The United Kingdom and our allies are acting on Putin’s oil, gas and shadow fleet. We will not relent until he abandons his war efforts,” she declared, underscoring the resolve of the allied nations.
The announcement comes at a critical juncture, coinciding with Russia’s Energy Week, an event designed to boost energy exports to non-Western markets. The FCDO clarified that these sanctions are intended to disrupt Moscow’s strategies for finding new markets for its oil and gas. The scope of the restrictions also covers refined oil products derived from Russian crude that have undergone processing in third countries.
Nayara Energy, which manages India’s second-largest private refinery in Gujarat, issued a statement affirming its strict adherence to all national laws and regulations. The company has previously voiced its strong disagreement with European Union sanctions, characterizing them as “unjust” and an infringement on India’s sovereign independence.