£35m cargo of ship boarded by Royal Marines could help to fund Kyiv’s war effort. The UK government is evaluating the auction of approximately 98,000 tonnes of Russian crude oil seized from the tanker Smyrtos, with proceeds potentially directed to Ukraine or used to procure military equipment for Ukrainian forces.
British authorities maintain that the cargo has legally transferred to state ownership following the vessel’s interception in the English Channel. Options under consideration include selling the Urals crude via auction and transferring the estimated £35 million in revenue to Ukraine, or processing the oil at domestic refineries.
The Smyrtos, a vessel associated with Russia’s so-called “shadow fleet,” was carrying the crude from the Baltic port of Ust-Luga to India when it was detained on 14 June.
The operation, conducted jointly with France in UK territorial waters under conditions of strict secrecy, marked the first such interception of its kind.Following the seizure, several other shadow fleet tankers — Maini, Lion I, and Sona — abruptly altered course to avoid the English Channel, opting instead for a significantly longer route around the British Isles.
The action forms part of a broader UK-led effort to disrupt Russia’s use of the shadow fleet to circumvent Western sanctions and the G7 oil price cap. In spring 2026, Prime Minister Keir Starmer’s government authorised British military and law enforcement agencies to intercept sanctioned tankers operating in UK waters.
The Smyrtos is expected to be released once investigations are complete, but the cargo will remain under UK control.
Should the oil be auctioned and the funds allocated to Ukraine, the move would set a significant precedent as the first instance of confiscated Russian energy assets directly financing Kyiv’s defence. No final decision on the disposal of the cargo has yet been announced.