Great Britain joins US sanctions on Russian oil companies that own NIS

(Patria) - The British government announced that it is imposing sanctions on two Russian oil companies - Gazpromneft and Surgutneftegas - to hinder Russian President Vladimir Putin's ability to finance the war in Ukraine.

The statement said that Great Britain and the US are directly sanctioning two Russian oil giants for the first time, which produce over a million barrels of oil per day, worth about 23 billion dollars annually at current prices, which is more than Jamaica's GDP. Profits from these two companies cover Putin's war costs in Ukraine, the London government indicated.

Previously, the US Department of the Treasury announced sanctions on Gazpromneft, which also included the Oil Industry of Serbia (NIS). Serbian President Aleksandar Vučić announced earlier this evening that Great Britain will immediately join the US sanctions, as will most European countries.

The British government states that every blow dealt to Russian oil revenues is another step towards a just and sustainable peace in Ukraine and a step towards security and prosperity in Great Britain and beyond.

"Today's action will limit Putin's revenue stream. Oil revenues are vital to the Russian war economy, accounting for about a quarter of Russia's entire budget in 2023. By sanctioning these companies, Russia's ability to generate revenue from energy sales is expected to be significantly reduced," the statement said.

British Foreign Secretary David Lamy said on this occasion that oil revenues are the "lifeline" of Putin's war economy.

"We will not stand by and allow oil profits to endanger Ukrainian lives – nor will we allow Russia to continue to fill its coffers while it continues to threaten our collective security," Lamy stated.

He added that "every ruble we take out of Putin's hands helps save Ukrainian lives" and that is why he has set himself a personal mission to limit the Kremlin and the companies that support it, for the good of democracy and common security.

"With the Russian economy lagging, facing high and accelerating interest rates and bleeding 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," Lamy said.

Today's announcement comes as Great Britain continues to put pressure on the shadow fleet that Russia uses to transport Russian oil. Just last month, the Prime Minister announced sanctions on another 20 ships responsible for transporting over four million barrels of Russian oil in 2024, bringing the total number of shadow fleet ships sanctioned by Great Britain to 93.