On December 18, 2025, the United Kingdom announced an expansion of sanctions against Moscow. The new sanctions list includes 24 entries, among them four major oil companies: Tatneft, Rosneft, Rusneftegaz, and NK Oil. These companies play a significant role in Moscow’s oil exports, and despite declining volumes, their market share remains notable.
The sanctions involve immediate freezing of accounts in UK banks, a ban for British firms on providing services or engaging in contracts with these companies, and a halt to financial operations. Five individuals also face travel bans to the UK. Notably, companies from the UAE and Uzbekistan that serve as intermediaries to help Moscow bypass restrictions are also included.
On the same day, the European Union imposed sanctions against 41 vessels from Moscow’s so-called shadow fleet, which are tankers used to transport oil circumventing Western restrictions. In total, 529 such tankers are already sanctioned by the EU, barred from entering European ports and from receiving services from EU companies.
Against this backdrop, Ukraine has struck sanctioned tankers in the Black Sea, further complicating export logistics for Moscow. Rising risks and costs have led insurance companies to raise premiums, forcing some shipowners to refuse contracts involving Moscow’s oil.
The sanctions and military strikes are becoming increasingly systematic and comprehensive, now affecting not only state but also regional companies and international intermediaries. Moscow is seeking new markets, but demand in China and India is limited, and prices are below global levels.
The sanctions are taking a toll on Moscow’s finances: in 2025, the budget deficit reached 5.7 trillion rubles, and spending on the war in Ukraine has surpassed 11 trillion rubles. The tightening measures are eroding the regime’s main source of revenue and accelerating a financial crisis.
The West has made it clear it does not intend to ease pressure. New sanctions packages keep getting more targeted and systematic, effectively blocking Moscow’s oil sector from international markets.
