GOV.UK: New UK sanctions hit the money, oil and supply chains fuelling Russia's war

• GOV.UK states that over 600 shadow fleet oil tankers are now sanctioned as part of Russia’s illicit oil trading network.
• GOV.UK notes the A7 network claimed to have moved more than $90 billion last year, roughly half of Russia’s annual military expenditure.

GOV.UK announced 38 new sanctions designations, including Russian oil companies Zarubezhneft and INK Capital, 12 shadow fleet oil tankers, three crypto exchanges, two payment platforms, and 17 entities and individuals supplying Common High Priority goods to Russia’s military.

The sanctions target those facilitating Russia’s oil production, illicit finance networks like A7, and suppliers of machine tools and electronics vital for Russia’s ballistic missile and drone capabilities, aiming to disrupt supply chains and financial flows supporting Russia’s war effort.

• 38 new sanctions designations
• over 600 shadow fleet oil tankers sanctioned
• $90 billion A7 network illicit finance moved last year

• Screen for exposure to Zarubezhneft and INK Capital in client and transaction lists.
• Review dealings with entities linked to the A7 network, which claimed to have moved more than $90 billion.
• Monitor transactions involving Common High Priority goods suppliers, including machine tools and electronics importers named in the GOV.UK sanctions package.

This story highlights the UK’s expanded sanctions regime targeting key financial, oil, and supply chain actors supporting Russia’s war effort. Compliance officers must ensure their institutions are not facilitating transactions with newly designated entities, including oil companies, shadow fleet tankers, crypto exchanges, and suppliers of military-critical goods. The inclusion of the A7 network and Common High Priority goods suppliers underscores the need for robust screening and monitoring to prevent inadvertent involvement in illicit finance or trade supporting sanctioned activities.