EU 21st Sanctions Package: Maritime Services Ban Dropped, 41 Vessels Sanctioned
The European Union has unveiled its 21st sanctions package, and as widely expected, the proposed comprehensive maritime services prohibition was dropped, enabling European vessel owners and marine service firms to keep transporting Russian crude as long as it is sold beneath the Oil Price Cap.
Much of the package had been signaled in advance, but disputes led by Greece over a total maritime services ban on shipping both Russian oil and LNG postponed final endorsement. Roughly a quarter of Russia’s crude, refined products, and fuel oil is moved by European shipowners under the price ceiling.
Sanctions Expansion: 41 New Vessels Added
The package imposes sanctions on an additional 41 vessels, raising the total to 632 designated ships. The EU indicated it targeted vessels that backed Russia’s energy sector, carried military gear, or transported pilfered Ukrainian grain. A number of smaller bunkering tankers used to supply shadow fleet vessels were included. Twelve of the 41 ships were already under sanctions. Among them, 34 were tankers, including smaller coastal tankers, six were bulk carriers, and one was a service vessel.
Shipmanagement Firms and Crewing Agencies Sanctioned
Eight shipmanagement firms in India, Singapore, Oman, China, and the UAE were sanctioned. The first crewing agency, Dubai-based Aquamarine Ship Management, was also designated. This move aims to disrupt Russia’s ability to maintain its energy sector operations.
Import Restrictions and Oil Price Cap
Import restrictions now apply to copper ores, nickel ores, lead ores, and precious-metal ores. Restrictions were also placed on sales of EU-owned LNG tankers; shipowners must notify regulators before selling to third countries, with a full ban currently under review. The Oil Price Cap for crude oil was fixed at its current level of $44.10 per barrel until July 2027, with reviews mentioned.
Temporary Exemptions and Clarifications
A temporary exemption from the full LNG services ban starting January 1 was granted for EU-owned LNG carriers that signed contracts before February 2022. The LNG terminal services ban introduced in the 20th package, also effective January 1, was clarified to cover Russia, EU, and non-Russian third-country operators controlled by Russian companies. Georgia’s Kulevi refinery has six months to cease using Russian oil.
Disruption of Sanctions Evasion Networks
Earlier packages concentrated on targeting enablers and facilitators of sanctions evasion in the maritime sector. Suniel Kumar, an Indian national identified as the mastermind behind a network of fraudulent ship registries used by sanctioned shadow fleet tankers to dodge sanctions, was sanctioned. Kumar is behind the Guyana registry, the largest fraudulent ship registry used by shadow fleet tankers, and at least a dozen others.
Safe Disposal of Seized Russian Oil Cargoes
Hidden in the legal text was a decision permitting authorities to safely dispose of Russian oil cargoes they seize and confiscate. At least three shadow fleet vessels in France, Germany, and Belgium are currently detained by authorities, according to the source.
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