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Britain targets Russia's Lukoil and Rosneft oil companies

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Aims to cut Kremlin revenues for funding Ukraine war

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Companies considered strategically significant to Russia

(Adds details of sanctions in paragraphs 2 and 3, context in

paragraph 8)

LONDON, Oct 15 (Reuters) - Britain on Wednesday targeted

Russia's two largest oil companies, Lukoil and Rosneft, and 51

shadow fleet tankers in what it described as a new bid to

tighten energy sanctions and choke off Kremlin revenues.

Lukoil and Rosneft were designated under the UK's Russia

sanctions laws for what Britain described as its role in

supporting the Russian government. They are subject to an asset

freeze, director disqualification, transport restrictions, and a

ban on UK trust services.

The two companies are considered strategically

significant to the Kremlin, the government said, adding that

their activities are of economic importance to Russia,

contributing to state revenues that help sustain its war in

Ukraine.

"We are introducing targeted sanctions against the two

biggest oil companies in Russia, Lukoil and Rosneft," Britain's

finance minister Rachel Reeves told reporters while on a trip in

the United States.

"At the same time, we are ramping up pressure on companies

in third countries, including India and China, that continue to

facilitate getting Russia oil onto global markets."

BRITAIN WILL TRY TO STOP MOSCOW FROM FUNDING WAR

Reeves said there was "no place for Russia in global

markets" and that Britain would take all necessary steps to stop

Moscow from funding its war in Ukraine.

Lukoil did not reply to a request for comment. Rosneft was

not immediately available for comment.

The new sanctions target 51 ships, including 44 within the

shadow fleet, as well as individuals and entities across sectors

including energy and defence.

Last month, U.S. Treasury Secretary Scott Bessent said the

U.S. would be willing to work with European countries to

consider steeper sanctions on Russian entities, including

Rosneft and Lukoil.

Rosneft is Russia's leading oil producer, accounting for

around 40% of the country's total output, and Lukoil the

second-biggest and with the largest foreign exposure among its

domestic peers.

The shadow fleet has increasingly been the target of

sanctions from Britain, the U.S. and the European Union since

Russia's invasion of Ukraine in February 2022.

It is a network of older tankers that officials say are used

to avoid sanctions on Russian oil.

Russia's embassy in London did not immediately respond to a

request for comment.