The United Kingdom has announced the largest package of sanctions against Russia since the first months of the conflict in 2022. The battery of measures includes nearly 300 new sanctions targeting sectors such as oil, liquefied natural gas, banking and the military industry.
Direct hit to the heart of Russian oil
First, the package targets PJSC Transneft, one of the largest pipeline companies in the world. pipeline company responsible for transporting more than 80% of Russian oil exports. This decision further complicates the marketing of Russian crude on international markets.
Likewise, the United Kingdom has sanctioned 175 companies linked to the “2Rivers” oil network, considered one of the largest operators of the so-called phantom fleet. This structure has been of utmost importance to circumvent international restrictions and maintain the flow of energy exports.
In addition, the new sanctions include 48 tankers carrying Russian crude oil in operations designed to circumvent Western controls.
What is the economic impact?
International sanctions have deprived Russia of more than $450 billion, a figure equivalent to 2 additional years of war funding, according to official British data.
For the past year, the Russian economy has been showing signs of stagnation, and oil revenues oil revenues are at their lowest level since 2020. As a result, Russia has increased the domestic tax burden, raising taxes such as VAT and corporate income tax to compensate for falling energy revenues.
Banking, LNG and nuclear sector under new restrictions
Moreover, the package is not limited to crude oil. The British government has sanctioned:
- 9 Russian banks that process cross-border payments essential for foreign trade.
- 6 liquefied natural gas sector targets, including ships, traders and the Portovaya and Vysotsk terminals.
- 3 civil nuclear energy companies and 2 individuals involved in nuclear projects abroad.
- 49 entities and individuals related to the supply of components and technology for Russian drones and weaponry.
With these measures, London is trying to close alternative financing channels and limit the technological capacity of the Russian military apparatus.
Strengthened support to Ukraine from Kiev
While sanctions against Russia were being announced, Foreign Minister Yvette Cooper was in Kiev to announce a new support package for Ukraine.
In particular, the UK will allocate an additional £30 million to strengthen energy resilience and support reconstruction. More than £25 million will be used to repair damaged infrastructure following a winter marked by attacks on the Ukrainian power grid.
This new item brings the total British support to Ukraine to 21.8 billion pounds since the beginning of the conflict.
A strategic message to Russia
Finally, the British government stresses that the Russian economy is going through a delicate moment. The combination of energy, financial and technological constraints seeks to steadily degrade the Kremlin’s ability to maintain its offensive.
Four years after the start of the armed conflict, London reinforced its position, maintaining economic pressure until it structurally limited the financing of the conflict.
Source: United Kingdom Government