Ukraine Imposes New Sanctions on Russian Oil Industry and Drone Manufacturers

Zelenskyy Enacts New Sanctions Against Russian Sectors

Ukrainian President Volodymyr Zelenskyy signed a series of decrees on Saturday, October 4, 2025, implementing new sanctions against Russia. These measures specifically target the Russian oil industry, drone manufacturers, and individuals with close ties to the Kremlin, as part of Ukraine's ongoing strategy to exert economic pressure on the aggressor state.

Targeting Russia's Military-Industrial Complex

One of the key decrees imposes sanctions on 33 individuals and 27 companies within Russia's military-industrial complex. This action is designed to weaken Russia's military potential and restrict its access to critical technologies. The targeted entities include manufacturers of drones, aircraft engines, and optical equipment, as well as suppliers of imported technologies and components that circumvent existing sanctions.

Notable companies sanctioned under this decree include:

• Hardberry Rusfactor, known for producing drones, counter-UAV systems, and developing neural network systems for automatic equipment recognition and target designation.
• Jupiter Plant, which manufactures optical and optoelectronic devices, scopes, and micro-optics for small arms.
• Valday Opto-Mechanical Design Bureau, a producer of optics, night-vision devices, and FPV drones with thermal imaging systems.
• Shenzhen Weiliao International Trade Co., a Chinese firm sanctioned for supplying components for UAV production at Russia's Alabuga Plant (also known as the Yelabuga drone factory), which manufactures Shahed-type strike drones, referred to as Geran-2.

Sanctions on the Oil Sector and Business Ties

A separate decree introduces sanctions against four individuals and three companies associated with Russia's oil sector, which Ukraine identifies as contributing to the financing of the war. Among these are Nefteavtomatika and its CEO, along with the Kurgan Chemical Engineering Plant (Kurgankhimmash LLC) and its CEO. These entities were reportedly attempting to infiltrate Ukraine's financial system through various business structures.

Additionally, a third decree extends existing sanctions, initially introduced in 2023, for another two years. These extended measures target Russian businessmen with close ties to the Putin regime, including companies linked to oligarchs such as Petr Aven, Mikhail Fridman, and Andrei Kosogov.

Ukraine's Broader Sanctions Strategy and International Coordination

President Zelenskyy emphasized that these new sanctions are part of Ukraine's 'comprehensive policy of pressure on Russia.' He stated that Ukraine continues to coordinate its sanctions decisions with international partners and anticipates the European Union's 19th sanctions package, as well as corresponding actions from the United States. Zelenskyy reiterated that Russia 'ignores or rejects nearly every opportunity to end the war and guarantee security,' and that Russian President Vladimir Putin 'wants to fight using 'terrorist methods, vile methods.'' Ukraine's objective is to ensure Russia 'must feel the consequences' of its actions.