UK expands sanctions on Russian oil production, shadow fleet

The UK government said Nov. 12 that it has sanctioned more Russian oil production as well as shadow fleet vessels involved in supplying Russian oil and LNG, as it targets nearly every part of the energy revenue chain.

The new listings include Slavneft, which holds licenses for oil and gas exploration and production across 35 blocks in west and east Siberia, according to the company's website. Most of its production is carried out in the Khanty-Mansi region. It also owns the Yanos and Mozyr refineries.

This makes the UK the first country to have sanctioned all of Russia's top 10 oil producers, the government said in a statement.

The UK has also sanctioned Rosneft's Vostok Oil project. Launched in September, most production from the project's key fields, Vankor and Payakha, is shipped via the Northern Sea Route, which runs through Russia's Arctic waters. Supplies from the project averaged 89,000 barrels/day in September and 24,000 b/d in October, according to data from S&P Global Commodities at Sea. Deliveries will face challenges in the winter when the open-water navigation window closes and tankers require icebreaker escort.

Rosneft said previously that Vostok Oil could supply up to 30 million metric tons of oil as early as the second half of 2027, rising to 50 million mt by 2030, subject to market demand and favorable economic conditions.

The UK announced the new sanctions as Prime Minister Andy Burnham said peace talks on Ukraine have progressed, but pressure must be ramped up on Russia to agree a full and immediate ceasefire.

Negotiators have so far failed to reach a deal to end the full-scale invasion of Ukraine, which began in February 2022. Future talks are expected to include energy, which has been a major target for both sides in recent months. Ukraine is bombarding Russia's refining network, and Russia is striking Ukrainian power infrastructure.