Saturday, March 29, 2025
UK Imposes Sanctions on Indian and Russian Oil Firms to Curb Moscow’s War Funding
In a major diplomatic move, the United Kingdom has announced new sanctions targeting both Russian and Indian oil companies, including India’s private refiner Nayara Energy Limited, as part of its effort to restrict Russia’s financial capacity to continue the war in Ukraine.
According to the UK Foreign Office, the sanctions are aimed at entities accused of supporting and financing Russia’s energy sector, which remains a key source of revenue for Moscow’s military operations. The move comes amid intensified global efforts to bring an end to the ongoing Russia–Ukraine conflict.
Among the sanctioned entities is Nayara Energy Limited, a major Indian private oil refiner that is partly owned by Russian oil giant Rosneft. The decision has surprised Indian authorities, especially as it follows just days after British Prime Minister Keir Starmer’s visit to Mumbai, where he met Indian business leaders and investors to boost bilateral economic cooperation.
Despite the cordial tone of Starmer’s visit, the UK government justified its latest step by citing the “urgent need to block Russian war funding”, suggesting that financial links through oil trading have been indirectly supporting the Kremlin’s wartime economy.
Reports suggest that the sanctions also cover four Chinese oil terminals and 44 tankers involved in transporting Russian crude. British officials claim that Nayara Energy imported more than 100 million barrels of Russian oil worth over USD 5 billion in 2024, significantly contributing to Moscow’s foreign exchange reserves during wartime.
Analysts believe these imports have enabled Russia to sustain its weapon purchases and military logistics despite extensive Western sanctions. Nayara Energy, which operates over 6,500 fuel stations across India, has not yet issued an official response to the UK’s action.
The move marks one of London’s toughest measures yet against companies outside Russia that maintain commercial ties with its energy exports. Observers say it could also test the diplomatic balance between the UK and India, as New Delhi continues to defend its energy purchases as a matter of national interest and economic security.
