The UK strikes a fresh blow against Putin's ability to finance
the war in Ukraine by sanctioning two major Russian oil
companies.
For the first time, the UK and the US are directly sanctioning
Gazprom Neft and PJSC Surgutneftegas, two 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 two 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, 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
