For the first time, the UK and the US are directly sanctioning Gazprom Neft and PJSC Surgutneftegas, 2 Russian oil giants. These energy companies produce over 1 million barrels of oil per day between them – worth roughly $23 billion a year at current prices, more than the GDP of Jamaica. The profits from these 2 companies are lining Putin’s war chest and facilitating the war.

Keeping the country safe is this government’s first priority and is an integral part of the Prime Minister’s Plan for Change. Every blow we strike against Russia’s oil revenues is another step towards a just and sustainable peace in Ukraine, and a step towards security and prosperity in the UK and beyond. 

Today’s action will clamp down on Putin’s flow of revenues. Revenues from oil are vital to Russia’s war economy, making up roughly a quarter of Russia’s entire budget in 2023. By sanctioning these companies, Russia’s ability to generate revenues from energy sales is expected to be significantly curtailed.

Foreign Secretary David Lammy said:

Oil revenues are the lifeblood of Putin’s war economy. We will not stand by and let oil profits endanger the lives of Ukrainians – nor will we let Russia keep filling its coffers as it continues to threaten our collective security. 

Taking on Russian oil companies will drain Russia’s war chest – and every ruble we take from Putin’s hands helps save Ukrainian lives.  

That’s why I have made it my personal mission to constrain the Kremlin and those companies propping it up, for the good of our democracy and shared security.

With the Russian economy on the back foot, facing high and accelerating interest rates and haemorrhaging billions into an unsustainable and illegal invasion, we will continue to work with our allies in the United States to turn the screw on Putin and his barbaric war.

Today’s announcement comes as the UK continues to exert relentless pressure on the shadow fleet Russia uses to transport Russian oil. Just last month the Prime Minister announced sanctions on 20 more ships responsible for transporting more than 4 million barrels of Russian oil in 2024, taking the total number shadow fleet vessels sanctioned by the UK to 93.

Background

The companies sanctioned today under the Russia (Sanctions) (EU Exit) Regulations 2019 are:  

• PJSC SURGUTNEFTEGAS 
• GAZPROM NEFT