Oil Tankers Pause Operations After US Sanctions Against Russia
Sixty-five oil tankers paused operations in various places around the world following the recent U.S.-U.K. sanctions against Russia‘s oil industry and shadow fleet, Reuters reported on Jan. 13, citing maritime tracking data.
The affected vessels were anchored off China and Singapore, with some idling in the Baltic Sea and near Russia‘s Far East. This development comes as a result of the latest sanctions targeting more than 180 oil-carrying vessels of Russia’s so-called shadow fleet, a group of aging tankers routinely used for sanction evasion.
Experts Weigh In on Sanctions Impact
Experts cited by Reuters said the latest measures drove up prices of tankers as demand for non-sanctioned vessels grew. This surge in demand has led to an increase in revenue for these unaffected tankers, further emphasizing the economic impact of the sanctions.
The recent sanctions also targeted two of Russia‘s major oil producers, Gazprom Neft and Surgutneftegaz, along with dozens of their subsidiaries. Combined, these companies reportedly produce over 1 million barrels of oil daily, generating an estimated $23 billion of revenue annually, according to the U.S. Treasury Department.
Sanctions Reach Deeper into Russia’s Oil Industry
The sanctions also extend to dozens of Russian energy officials and corporate executives, further tightening restrictions on Moscow’s oil industry. This move aims to limit Russia‘s ability to circumvent international sanctions by using its aging tanker fleet for sanction evasion.
As the situation continues to unfold, it remains to be seen how these latest sanctions will affect global oil markets and Russia‘s economy as a whole. One thing is certain, however: the impact of these measures will be felt across the globe, with far-reaching consequences for both the energy industry and international relations.
Original Article: 65 oil tankers drop anchor after latest US sanctions against Russia, Reuters reports — Kyivindependent