The United Kingdom has intensified its economic pressure on Russia by introducing a new wave of sanctions targeting companies involved in the nation’s oil trade. Notably, India’s prominent private refiner, Nayara Energy Limited, has been placed on this sanctions list. British authorities stated that this measure is designed to curtail President Vladimir Putin’s financial capacity amidst the ongoing conflict in Ukraine.
Nayara Energy, a significant player in India’s fuel retail sector with over 6,500 stations and an 7-8% market share, is now facing these restrictions. The UK’s Foreign, Commonwealth and Development Office (FCDO) emphasized that these sanctions are aimed at the very foundations of Putin’s war financing. “Today’s step shows the government’s full commitment to cutting off Putin’s revenue streams, including Russian companies and their global enablers,” a statement from the FCDO read.
The expanded sanctions list includes four oil terminals located in China, a fleet of 44 Russian crude carriers, and the Indian refiner, Nayara Energy. The UK government claims that Nayara Energy imported approximately 100 million barrels of Russian oil during 2024, a transaction valued at over $5 billion.
Beyond the Indian refiner, companies in Thailand, Singapore, Turkey, and China are also subject to these new sanctions. The UK has accused these entities of providing crucial electronic components that are integral to Russia’s military supply chain, including those used in drones and missiles deployed in Ukraine.
The measures directly impact major Russian oil corporations such as Rosneft and Lukoil. Official UK government figures indicate that Rosneft alone is responsible for nearly half of Russia’s oil production and contributes 6% to the global oil output.
During a parliamentary address, UK Secretary of State for Foreign and Commonwealth Affairs Yvette Cooper stated, “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.”
These sanctions were announced concurrently with Russia’s Energy Week, a period when Moscow seeks to bolster its energy exports to non-Western nations. The FCDO highlighted that the sanctions are intended to undermine Russia’s efforts to secure new markets for its oil and gas. The restrictions also extend to refined oil products originating from Russian crude processed in third countries.
Nayara Energy, which operates India’s second-largest private refinery in Vadinar, Gujarat, issued a statement asserting its full compliance with all Indian laws and regulations. The company previously criticized earlier European Union sanctions as “unjust” and an infringement upon India’s sovereign rights.