By Matthew Sellers
British insurers and maritime firms will soon be barred from servicing tankers carrying Russian liquefied natural gas (LNG), under sweeping new sanctions unveiled by the government to cut off Moscow’s energy revenue streams.
The prohibition, announced by Foreign Secretary Yvette Cooper ahead of a G7 foreign ministers’ meeting in Niagara, Canada, will be introduced in stages through 2026, in coordination with other European nations. The measure extends existing bans on Russian oil-related services to LNG exports, further closing off financial and logistical channels that have helped sustain the Kremlin’s war economy.
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Imports of Russian LNG into the UK have been banned since 2023, but British insurers and shipping groups have continued to handle cargoes bound for other destinations. With London commanding roughly 90% of the global marine insurance market, the new curbs represent one of the most consequential Western efforts yet to disrupt Russia’s fossil fuel exports.
The sanctions arrive after months of mounting political pressure over the role of British insurers in supporting the LNG trade.
Campaigners have pointed to Seapeak Maritime (Glasgow) Ltd, which they claim helped transport around four million tonnes of LNG from Russia’s Yamal export terminal in the first half of 2025 – representing nearly 39% of total shipments over that period.
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Industry sources confirm that Seapeak’s Protection and Indemnity (P&I) coverage is provided by UK-based mutuals including the North of England P&I Association and the Standard P&I Club, managed by Charles Taylor & Co. The company has also cited Skuld as one of its main insurers.
These arrangements had prompted calls for the government to act, amid criticism that British insurers were indirectly sustaining Russian export revenue. That pressure has now yielded the government’s first definitive timeline for a ban on such coverage.
The Foreign Office said the sanctions are part of a coordinated Western campaign to starve Russia of funding for its war effort. The European Union’s own measures, due to take effect from January 2027, will prohibit LNG imports under long-term contracts. The UK’s phased rollout means British firms will be able to service some shipments until the EU’s restrictions begin.
Foreign Secretary Cooper said that “Putin is trying to plunge Ukraine into darkness and the cold as winter approaches.” She added: “These cowardly strikes are not only an attack on Ukraine’s security, but a threat to the UK’s economic security, stability and growth.”
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In parallel, the government announced £13 million in additional funding to support Ukraine’s energy sector. The aid will be used to repair infrastructure damaged by recent Russian strikes and provide winter heating assistance.
For the insurance sector, the sanctions will add another layer of compliance complexity to an already constrained global energy market. Marine underwriters will need to verify that no Russian-origin LNG cargoes are covered under existing policies, while brokers may have to revisit contracts and reissue guidance to shipowners.
The London marine insurance market, long a cornerstone of international trade, will face heightened scrutiny over the origin and routing of energy shipments. Analysts warn that even inadvertent breaches could carry reputational and financial penalties under the UK’s expanding sanctions regime.
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Svitlana Romanko, founder and executive director of the advocacy group Razom We Stand, welcomed the government’s decision, saying: “Cutting off U.K. maritime support for Russian LNG exports will choke the revenues fuelling Putin’s brutal war machine, revenues that have sustained atrocities from the start.”
The move follows reports that Western sanctions have already disrupted Russian LNG production. In October 2024, operations at the Arctic LNG 2 project were halted, while two of Russia’s largest LNG facilities temporarily suspended output earlier this year due to US restrictions.
Officials in London said the latest measures would reinforce the UK’s leadership in the global sanctions regime, closing remaining loopholes in energy-related services.