In a move set to deepen pressure on Moscow, the United Kingdom announced plans on 11 November to prohibit companies from offering shipping and insurance services for Russian liquefied natural gas (LNG) exports. The measure, designed to curb Kremlin energy revenue and support Ukraine, will be phased in during 2026 in coordination with European partners.
According to the UK government statement, the ban will target maritime services — including shipping firms and insurers — that facilitate the export of Russian LNG to third countries. The prohibition takes effect gradually through 2026 and is aligned with similar efforts by EU nations. The statement emphasised: “This action will significantly reduce Russian exports of LNG and directly cut off access to the UK’s world-leading maritime services.” In tandem with the sanctions, the UK pledged £13 million to help restore Ukraine’s energy infrastructure and assist civilians suffering heating and power shortages.
Why the UK Is Taking This Step
The United Kingdom’s decision comes amid a broader western strategy to undermine Russia’s revenue streams amid its war in Ukraine. The move expands beyond previous sanctions that targeted Russian oil and specific shipping entities. By restricting maritime services rather than imports alone, the UK aims to choke off the logistical and insurance lifelines that allow Russian LNG to reach global markets. The ban complements the European Union’s decision in October to ban Russian LNG imports from 1 January 2027.
Impact on the Energy and Shipping Sectors
Experts say the ban on UK-based maritime and insurance services could raise the cost and risk of transporting Russian LNG, potentially deterring buyers and shippers. Given London’s prominence in maritime finance and insurance, the UK’s move may ripple across global LNG transport chains.
Shipping firms involved in Russian LNG exports will likely need to tap less established insurers or operate outside Western service networks — options that carry higher premiums and regulatory risk. For Russia, the decision narrows access to Western maritime infrastructure at a time when its exports are under sustained economic and logistical pressure.
Western Sanctions on Russian Energy and Maritime Networks
The UK’s new restriction builds on earlier years of sanctions targeting Russian energy and maritime networks. In 2024, Britain sanctioned vessels and entities linked to the so-called “shadow fleet” of ageing tankers used to circumvent Western oil sanctions.
The UK is also part of a coalition of Northern European states demanding proof of insurance from tankers suspected of evading sanctions. These moves form part of a growing focus on the role of shipping and insurance services in enabling the transport of sanctioned energy. Russia’s LNG exports, previously less targeted than oil, are now coming under increasing scrutiny as Western governments aim to tighten the noose on Kremlin financing.
What to Watch Next
Key next steps include: which UK-based companies and insurers will be affected; whether any exemptions apply (for example for certain third-country transit or existing contracts); the impact on LNG prices and supply chains; and how Russia and its trading partners respond — possibly shifting to non-Western insurers or rerouting cargoes. Analysts will also track whether European partners lock in coordinated bans and whether Russia accelerates its non-Western maritime arrangements. The promised UK aid for Ukraine’s energy sector will also be monitored as winter approaches and Ukraine faces renewed energy infrastructure attacks.
