UK Sanctions 135 Tankers in Sweeping Crackdown on Russia’s Shadow Fleet
The United Kingdom has imposed sanctions on 135 targets linked to Russia‘s energy sector, including 135 oil tankers operating as part of Putin’s shadow fleet, in one of its most extensive maritime sanctions actions to date. The sanctions, announced on July 21, 2023, specifically target vessels responsible for illicitly carrying $24 billion worth of cargo since the beginning of 2024.
This action coincides with the UK and EU lowering the Crude Oil Price Cap, further restricting Russia‘s ability to profit from oil sales. The move aims to cripple Russia’s shadow fleet, which has been instrumental in circumventing international sanctions and generating revenue for Moscow.
Entities Sanctioned
Among the entities sanctioned are INTERSHIPPING SERVICES LLC, responsible for registering shadow fleet vessels under Gabonese flags, and LITASCO MIDDLE EAST DMCC, a Lukoil-linked company involved in moving large volumes of Russian oil. These companies have been instrumental in facilitating Russia‘s illicit energy trade, allowing Moscow to continue profiting from its energy sector despite international sanctions.
Impact on Russia’s Economy
Western sanctions have already had a measurable impact on Russia‘s economy, with oil and gas revenues falling every year since 2022 – losing over a third of their value in three years, according to the UK. The Russian economy shows signs of strain with a hollowed-out wealth fund, rising inflation, and spiraling government spending on defense and security.
UK officials describe the ongoing sanctions effort as “another step towards securing a lasting peace in Ukraine, and a step towards security in the UK and beyond.” The move is seen as a significant escalation of pressure on Russia‘s energy sector, which has been the backbone of Moscow’s economy.
EU Sanctions
This action follows the European Union’s recent adoption of its 18th sanctions package against Russia last week, which included port access bans for 105 additional vessels, bringing the total of EU-listed vessels to 444. The EU has also lowered its price cap for Russian crude oil from $60 to $47.6 per barrel and introduced an automatic mechanism to align the cap with global oil prices.
Additionally, it has imposed a full transaction ban on the Nord Stream 1 and 2 pipelines. These measures aim to further restrict Russia‘s ability to generate revenue from its energy sector, ultimately weakening Moscow’s ability to fund its military campaigns in Ukraine and other regions.
Original Article: U.K. Sanctions 135 Tankers in Sweeping Crackdown on Russia’s Shadow Fleet — Gcaptain