New EU sanctions to hit Lukoil's Dubai unit and Surgutneftegaz – Bloomberg

The European Union is considering imposing sanctions against Litasco Middle East DMCC, the Dubai-based trading arm of Russian oil giant Lukoil, according to Bloomberg.

The move would be the first time Western governments have sought to impose sanctions on Litasco since Russia's invasion of Ukraine. Its parent company, Lukoil, was the second largest seller of Russian crude oil on foreign markets last year.

Litasco Middle East faces sanctions for allegedly contributing to the growth of the so-called shadow fleet of ships transporting Russian oil.

In total, the measures will target about 60 people and about 150 vessels, bringing the number of vessels under EU sanctions to more than 300, the agency reported earlier.

The list also includes VSK, which is one of the five largest Russian insurance companies (last year it was blacklisted by Britvnia) and Surgutneftegaz (hit by US sanctions in January 2025).

According to Bloomberg calculations based on industry data, Surgutneftegaz was Russia's third-largest crude oil exporter, accounting for nearly 12% of last year's sales to foreign markets, excluding the former Soviet Union.

Impose European sanctions against Lukoil, which has a wide presence on international markets, including its trading subsidiary Litasco, called the Yermak-McFaul group in the fourth Action Plan to strengthen sanctions against Russia.

A document published on the website of the President of Ukraine states that three leading Russian oil and gas companies (Rosneft, Gazprom and Lukoil) are still not under European sanctions, as are several smaller ones, including Zarubezhneft, Tatneft and Novatek .

"Europe can also send a clear signal that if Russia continues the war, further sanctions will affect Novatek (including a ban on Yamal LNG supplies to Europe), Rosneft and Gazprom (including the cessation of all remaining Russian oil and gas supplies to Europe), according to a pre-determined schedule," the document says.

• Russian federal budget revenues from oil and gas in April 2025 decreased by almost 12% year-on-year, by 10.3% in the first four months.