UK sanctions Indian refinery, 89 others to curb Russia’s oil trade

London: The United Kingdom has imposed sanctions on 90 entities, including India’s Nayara Energy Ltd., which operates the Vadinar refinery in Gujarat. 

The UK Foreign, Commonwealth & Development Office (FCDO) announced the sanctions on Wednesday, targeting entities linked to Russia’s top oil producers, Lukoil and Rosneft—both of which jointly own 49.13% of Nayara Energy. The European Union had sanctioned Nayara’s Vadinar refinery earlier on July 18.

The sanctions come shortly after a high-profile UK-India trade mission in Mumbai and the signing of a comprehensive Free Trade Agreement (FTA) on July 24, during Indian Prime Minister Narendra Modi’s visit to London—raising questions about the timing of the move.

The UK’s latest sanctions package includes an asset freeze, director disqualifications, transport restrictions, and a ban on providing trust or financial services to targeted entities. It also lists 44 tankers from Russia’s “shadow fleet” and four oil terminals in China. In total, Britain has frozen £28.7 billion worth of Russian assets since the invasion of Ukraine in 2022.

UK Chancellor Rachel Reeves, speaking from Washington DC, said the government is “ramping up pressure on companies in third countries, including India and China.” She added, “We are sending a clear signal: Russian oil is off the market.”

While India’s state-owned refiners have significantly reduced Russian crude imports—by over 45% between June and September 2025—Nayara Energy has reportedly increased its purchases.

According to UK data, Nayara imported over 100 million barrels of Russian crude worth more than $5 billion in 2024, with import levels hitting a new high in October 2025.

This escalation underscores the West’s intent to close loopholes in sanctions enforcement, even as it risks straining diplomatic and trade ties with strategic partners like India.

The move is part of expanded sanctions targeting Russian oil giants and their global affiliates.