Sanctions row grows ahead of Rosebank approval

The expected decision on the Rosebank oil field off Shetland is becoming a dispute not only about energy supply, but also about sanctions compliance. Environmental campaigners and Green Party leader Zack Polanski have asked for clarity on whether the project’s Israeli links conflict with the government’s newly announced measures against illegal settlements in the West Bank.

According to a letter seen by the BBC, representatives of Stop Rosebank and Greenpeace, backed by Uplift, wrote to Andy Burnham and Ed Miliband. The campaigners want a clear statement on whether the sanctions announced last month apply to Delek Group because of its indirect stake in Rosebank.

What the ownership structure and economic case suggest

At the center of the dispute is Ithaca Energy, which is controlled by Delek Group. The London-listed company, which is part of the FTSE 100, owns a 20% stake in the Rosebank project.

Last year, Delek Group was listed in a United Nations database among companies alleged to provide services or infrastructure to settlements in the occupied Palestinian territories. In a statement to the Daily Telegraph, the company said it no longer has any ties to Israeli settlements and argued that it had been wrongly included in the database.

  • The measures announced by the UK last month impose sanctions on companies and individuals providing support for settlement expansion.
  • The new framework also includes a ban on imports of goods from illegal settlements.

Companies stress investment and revenue

Ithaca Energy said it maintains high corporate governance standards and is a major investor in the North Sea and Scotland. The company also said it contributes to the UK Treasury through tax payments and plays a role in the country’s energy security.

Political and international fallout will be watched closely

Rosebank was approved in 2023 by the previous Conservative government. But that approval was later overturned in court after a legal challenge by campaigners including Uplift, delaying the process.

The new decision is expected to be considered by Energy Secretary Miatta Fahnbulleh alongside the Jackdaw gas field east of Aberdeen. The outcome is being closely watched by markets and the energy sector for what it could signal about how flexibly the UK will approach new drilling under existing North Sea licenses.

The case also has a foreign policy dimension. How the government applies sanctions related to the West Bank, and US pressure for more production in the North Sea, have turned Rosebank into a test case at the intersection of energy investment and geopolitical risk.