UK sanctions Russian energy firms Russneft, Tatneft amid international efforts

The UK has imposed fresh financial sanctions on Russian energy companies, intensifying international efforts to curb Moscow's energy revenues amid the ongoing Russia-Ukraine war.

The UK Treasury announced Dec. 18 that 24 additional companies have been added to the UK's consolidated Russia sanctions list, subjecting them to measures including asset freezes. Among those targeted are energy players Russneft, Tatneft, NNK, and Mercantile & Marine Group.

Producers Russneft, Tatneft and trader Mercantile & Marine Group did not respond to requests for comment, while upstream oil and gas company NNK was not contactable for comment. Murtaza Ali Lakhani, who was also sanctioned Dec. 18, was identified in the Treasury statement as controlling Mercantile & Marine "directly or indirectly".

Russneft produces 6 million mt/year of oil and has 632 million mt of reserves, according to its website.

Russneft last reported that it exported a total of 2.4 million mt of oil in 2024 (48,000 b/d), both by pipeline and seaport, without providing specific breakout figures by delivery route.

Tatneft owns the 178,000 b/d Taneco refinery. Russia's Interfax reported the company's production to be 27.28 million mt (457,000 b/d) in 2024.

The UK's move comes as Western nations ramp up pressure on Russia's energy sector.

Also on Dec. 18, the EU sanctioned 41 more vessels from Russia's so-called shadow oil tanker fleet, aiming to further restrict Moscow's crude exports and limit revenues funding its war effort.

The discount of Russia's Urals crude to international benchmarks has been widening. Platts, part of S&P Global Energy, assessed Urals on a FOB basis at Primorsk at $30.91/b Dec. 17, representing a $29.97/b discount to Dated Brent. The discount averaged $26.67/b over Dec. 1-17, widening from $14.17/b through November and $12.34/b through October.