The UK is considering selling oil seized from a Russian “shadow tanker” as a way to raise funds for Ukraine, with Prime Minister Sir Keir Starmer weighing options for how the captured cargo could be handled.

According to reporting, ministers are discussing a potential auction of the crude oil carried on board the Smyrtos, a vessel intercepted by Royal Marines in the English Channel on June 14. The tanker is believed to be part of Russia’s shadow fleet—ships that evade Western sanctions by secretly transporting sanctioned Russian fuel to buyers willing to flout restrictions.

Since the seizure, the Smyrtos has been held off the coast near Weymouth under UK control. The ship’s captain, Ajay Pant (an Indian national), has been charged with sanctions evasion.

The government’s position is that the oil onboard now legally belongs to the UK, and officials believe it could be sold or otherwise monetized. The amount reported is around 98,000 to 100,000 tons, with a market value estimated at about £35 million.

Ministers are said to be considering proposals at an early stage for using the money raised to support Ukraine’s war effort—either by transferring proceeds directly to Ukraine or by funding equipment destined for the front lines. The reporting also notes that an alternative idea under discussion is refining the oil in the UK and using it for domestic energy needs, though it is unclear how that would work if the oil is held in public ownership.

The seizure is also described as part of a broader escalation in the UK’s efforts to disrupt Russia’s illicit oil trade. The shadow fleet is credited by analysts as helping Russia continue earning revenue despite sanctions, by moving oil through third countries that do not enforce the same restrictions.