UK slaps sanctions on Transneft, targeting Russia’s oil pipeline giant

The United Kingdom has imposed sanctions on Russia’s state-controlled pipeline operator Transneft, which also holds 24 percent stake in the Caspian Pipeline Consortium (CPC).

On February 24, the British government expanded its Russia sanctions regime by 297 entries. The latest package targets 240 Russian companies, including several mid-sized banks and subsidiaries of Rosatom and Gazprom, as well as seven individuals. The measures also apply to companies based in China, India, Thailand, and the United Arab Emirates, along with two Georgian television channels, Caliber.Az reports, citing Kazakh media.

In outlining its rationale, London cited Rosneft’s role in the energy sector, which it described as being of strategic significance to the Russian authorities. Transneft operates the world’s largest trunk pipeline network and is responsible for transporting approximately 80 percent of Russia’s oil exports. Its system includes the Druzhba pipeline, which has been used to deliver Kazakh crude to Germany since 2023. Until now, Transneft had largely avoided being placed under Western sanctions.

Beyond its pipeline operations, Transneft manages Russia’s 24 percent shareholding in the CPC. Kazakhstan controls 19 percent through KazMunayGas, while US-based Chevron holds 15 percent. Russia’s Lukoil owns 12.5 percent—having been sanctioned by Washington last October and currently divesting foreign assets. Another 7.5 percent belongs to ExxonMobil, and a joint venture between Rosneft and Shell holds an additional 7.5 percent stake.

Following news of the sanctions, Transneft’s preferred shares fell 1.18 percent on the Moscow Exchange, with intraday losses reaching as much as 1.7 percent.

By Vafa Guliyeva