FCDO announces new sanctions on Russian oil giants
The Foreign, Commonwealth & Development Office (FCDO) has announced unprecedented sanctions against two major Russian oil companies, Gazprom Neft and PJSC Surgutneftegas, in coordination with the United States. These sanctions, implemented under the Russia (Sanctions) (EU Exit) Regulations 2019, SI 2019/855, target companies producing over 1 million barrels of oil daily, valued at approximately £23bn annually. The measure aims to significantly reduce Russia's ability to finance its war efforts in Ukraine by constraining its oil revenues, which constitute roughly a quarter of Russia's 2023 budget. This action follows previous sanctions on 93 vessels in Russia's shadow fleet, demonstrating the UK's commitment to exerting sustained pressure on Russia's energy sector and its capacity to fund military operations.