EU Proposes Sanctions on Companies Issuing False Flags for Russian Oil Tankers

EU Proposes Sanctions Against Issuers of False Flags in Shadow Fleet

The European Union is considering imposing sanctions on companies that have organized false flags for at least eight tankers supporting Russia’s oil trade, according to a report by Bloomberg. The proposed package would be part of the 19th package and is still being discussed by the European Commission.

The EU has already sanctioned over 500 tankers out of an estimated fleet of nearly 1,000 vessels supporting the Russian energy sector. The new package aims to target as many as 120 additional tankers and adds the new element of targeting the providers of false flags. This move is seen as a significant step in the efforts to rein in the shadow fleet.

False Flags and Fraudulent Operations

The government of Sint Maarten warned in July that it was aware of “fraudulent operations promoting its supposed international flag registry and the issuance of seafarer papers.” The Netherlands issued a formal warning to the International Maritime Organization about the efforts as well. It is noted that Sint Maarten, as well as Aruba and Curacao, are not registered with the Paris MOU and, as such, are not recognized as maintaining international registries.

The government said it had first become aware of the efforts five years ago and had been working with the international authorities to stop the fraud. The Equasis database currently lists 16 vessels as falsely claiming a flag in Sint Maarten, which is down by four since the end of July. However, it includes nine crude oil tankers, including one at 136,000 dwt and another at 160,000 dwt, as well as four product tankers.

Prevalence of False Flags

The data shows that false flags from Aruba and Curacao are even more prevalent. Equasis lists a total of 27 vessels with a false Curacao flag. It includes a total of nine crude oil tankers (six of which are between 150,000 and 160,000 dwt) as well as nine product tankers and two LPG carriers. Aruba is shown to have 24 false flag reports with five crude oil tankers, nine product tankers, and two LPG carriers.

European Efforts to Restrict Shadow Fleet

The Europeans have been highlighting their plans to increase efforts to further restrict the shadow fleet. France recently detained a notorious tanker on suspicion that it was operating under a false flag. Denmark this week said it would increase environmental inspections on tankers in one of its main anchorages near the entrance into the Baltic, and Sweden also reported that it would be increasing monitoring in the region.

Despite all the efforts and sanctions, the number of tankers participating in the so-called shadow fleet has continued to grow. The EU nations will have to unanimously approve the further expansion of the sanctions’ regime.

Original Article: Report: EU to Include Issuers of False Flags in Shadow Fleet Sanctions — The Maritime Executive