The UK and Canada Impose New Sanctions on Russia’s Military Industry and Shadow Fleet

The United Kingdom and Canada have imposed new sanctions to restrict Russia’s military industry and its shadow fleet of vessels.

According to the UK government, several LNG tankers carrying Russian liquefied natural gas have been added to the sanctions list.

The sanctions also target financial networks used to bypass Western restrictions and to support Russia’s military purchasing.

The number of vessels under sanctions, including shadow fleet ships and gas carriers, is expected to increase to more than 600.

Vladyslav Vlasiuk, Ukraine’s presidential sanctions policy envoy, told Militarnyi that the new British sanctions package targets three key elements of Russia’s war machine: procurement networks for military-industry technologies, financial infrastructure used to circumvent sanctions, and revenues from energy exports.

He said that sanctions against banks and cryptocurrency payment systems helping Russia bypass restrictions are also an important step.

“First of all, it is important to note the sanctions on companies in the A7 network — a crypto platform registered in Kyrgyzstan that is effectively Russian in origin (created by the sanctioned Promsvyazbank). It works for Russia-linked financial structures and is used for cross-border payments outside the traditional banking system,” Vlasiuk said.

He added that Wildberries Bank and Yandex Bank were also sanctioned. This shows an effort to limit not only traditional banks but also the financial systems of large tech companies from being used for international transactions and sanctions evasion.

Sanctions were also imposed on companies supplying dual-use goods to Russia, including several Chinese firms: Shenzhen Huaxin Antenna Technology, which produces antennas and telecommunications equipment; ComNav Technology, a satellite navigation systems manufacturer; and SHTRAL Technology and SHTRAL Makine, which make CNC machine tools.

Sanctions were also imposed on a network of officers from the Main Directorate of the General Staff of the Armed Forces of the Russian Federation and affiliated entities. According to the UK assessment, they were involved in procuring dual-use goods for Russia’s defense sector.

Canadian Prime Minister Mark Carney announced after meeting Ukrainian President Volodymyr Zelensky on the sidelines of the G7 leaders’ summit in France that Canada is introducing new sanctions targeting Russia’s shadow fleet, energy revenues, defense industry, and disinformation.

Overall, this package covers 162 individuals, entities, vessels, and assets linked to Russia’s military machine.

According to Vlasiuk, the sanctions target key parts of Russia’s financial system, including the Moscow Exchange, the St. Petersburg Stock Exchange, and Absolut Bank.

He also noted a strong focus on the crypto sector and alternative payment systems, including Grinex LLC, Old Vector LLC, and TengriCoin CJSC. These entities are linked to cross-border payments outside the traditional banking system.

The sanctions also cover insurance and maritime service companies such as Maritime Mutual, Soglasie Insurance Company, and Nova Shipmanagement, which provide insurance and management for ships in Russia’s shadow fleet.

Overall, the Canadian package aims to cut off Russia’s access to financial channels, crypto networks, and maritime services that support its export revenues despite sanctions.