On 21/7, the UK Foreign Office announced sanctions against 135 vessels in Russia's so-called "shadow fleet" to reduce Moscow's revenue. The ministry stated it was clamping down on the fleet, which it said has "illegally transported goods worth USD 24 billion since the beginning of 2024".
"Shadow fleet" is a Western term for vessels believed to be used by Russia to circumvent sanctions. These ships are managed through a network of shell companies to conceal ownership. Security experts say the fleet primarily consists of older vessels.
A maritime services provider and an oil trading company were also sanctioned: Intershipping Services, accused of "flagging shadow fleet vessels with Gabonese flags," and Litasco Middle East DMCC "for its role in transporting significant quantities of Russian oil using shadow tankers." Litasco is linked to the Russian oil company Lukoil.
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The oil tanker Eventin, suspected of being part of Russia's "shadow fleet," off the coast of Germany on 10/1. Photo: AP |
The oil tanker Eventin, suspected of being part of Russia's "shadow fleet," off the coast of Germany on 10/1. Photo: AP
Hundreds of ships have been sanctioned by the European Union (EU) and the UK since Russia launched its military campaign in Ukraine in 2/2022. "These new sanctions will dismantle the shadow fleet and cut off a key source of oil revenue for Russia. While President Vladimir Putin continues to evade and delay peace talks, we will not stand idly by," UK Foreign Secretary David Lammy stated.
This move comes just days after the UK and the EU lowered the price cap on Russian oil from USD 60 to USD 47.6 per barrel. Under the sanctions, shipping and insurance companies in these countries are prohibited from servicing exports of Russian oil sold above the price cap. This policy aims to squeeze Russia's revenue without disrupting global fuel flows.
The decision to lower the price cap was part of the 18th sanctions package against Russia adopted by the EU on 18/7. The bloc also banned transactions related to the Nord Stream pipeline between Russia and Germany. Rosneft's refinery in India was also affected.
The new sanctions package also targets Russia's banking sector, aiming to limit the Kremlin's ability to raise capital or conduct financial transactions. Two Chinese banks were added to the restricted list.
Ha Thu (Reuters, AFP)
