Members of the European Parliament (MEPs) on Thursday (14 November) demanded more targeted EU sanctions against Russia’s so-called ‘shadow fleet’, which provides a key financial lifeline for Moscow’s war in Ukraine.

Russia uses old tankers, often uninsured and with unclear ownership, to export its crude oil and petroleum products abroad, despite EU, G7 and international sanctions. 

In a statement, the MEPs said these activities have also raised fears over the risk of environmental disasters, including severe oil spills. As part of systematic efforts to undermine EU restrictive measures, the ‘shadow fleet’ provides a key financial lifeline for Russia in its illegal and unjustifiable war of aggression against Ukraine.

In a resolution adopted on Thursday, the European Parliament calls for more targeted measures against these vessels in the next EU sanctions packages, including all individual ships as well as their owners, operators, managers, accounts, banks and insurance companies. 

It also demands the systematic sanctioning of vessels sailing through EU waters without known insurance and urges the EU to enhance its surveillance capabilities, especially drone and satellite monitoring, and to conduct targeted inspections at sea. MEPs want EU member states to designate ports capable of handling sanctioned vessels carrying crude oil and Liquified Natural Gas (LNG) and to seize illegal cargo without compensation.

The resolution further calls on G7 countries to better enforce the price cap imposed on Russian seaborne oil, to substantially decrease the oil price cap and to crack down on the loopholes used by Russia to repackage and sell its oil and oil products at market prices. 

Stressing that the impact of existing sanctions and the financial and military support to Ukraine will continue to be undermined as long as the EU imports Russian fossil fuels, the MEPs urge the EU and its member states to ban all imports of Russian fossil fuels, including LNG. 

Pointing towards the need for much stricter enforcement of current EU sanctions, the text also states that the EU should seriously reassess its bilateral cooperation with third countries that are helping Russia circumvent EU restrictive measures in place, if diplomatic efforts are unsuccessful.

Photo credit: Guillaume Périgois on Unsplash
Published: 18 November, 2024

The UK on Thursday (17 October) unleashed the largest package of sanctions to date against Putin’s shadow fleet of oil tankers.

The Foreign, Commonwealth & Development Office (FCDO) said 18 more shadow fleet ships will be barred from UK ports and unable to access world-leading British maritime services, bringing the total number of oil tankers sanctioned to 43. 

“The shadow fleet seeks to undermine sanctions and poses a clear and present danger. Environmental risks, such as oil spills, on our coastlines as a result of its flagrant violation of basic safety standards, but also risks to the security of global trade – the lifeblood of economic growth,” it said in a statement.  

At the European Political Community Summit in July, the Prime Minister announced the shadow fleet call to action. Today the US and Canada have joined 44 European countries plus the EU in working together to tackle the risks posed by the shadow fleet. 

“The UK’s relentless action against the shadow fleet is putting grit into the system and starving Putin’s war machine of crucial revenues. The oil tankers targeted today have transported an estimated $4.9 billion in the last year alone,” FCDO said. 

“A significant number of the ships targeted by the UK to date have been forced to sit idling uselessly outside ports across the world, unable to continue pouring money into Putin’s war chest.”

Alongside action against the shadow fleet, the UK is sanctioning four more LNG tankers and Russian gas company Rusgazdobycha JSC. 

“We are continuing to ratchet up pressure on the beleaguered Russian gas industry, with flagship company Gazprom posting a significant net loss of $6.9 billion in 2023 - its first annual loss in more than 20 years,” FCDO added. 

Foreign Secretary, David Lammy, said: “We must combat malign Russian activity at every turn, whether illicit tactics to bolster Putin’s war chest, their use of cyber-attacks or barbarism on the front line in Ukraine. 

The UK is leading the charge against Putin’s desperate and dangerous attempts to cling on to his energy revenues, with his shadow fleet placing coastlines across Europe and the world in jeopardy. 

I have made it my personal mission to constrain the Kremlin, closing the net around Putin and his mafia state using every tool at my disposal.”

This new shadow fleet package comes in the weeks following recent UK actions to sanction both Russian cyber-crime gang Evil Corp, and Russian troops found to be using chemical weapons on the front lines in Ukraine. It represents the latest in a drumbeat of activity, with each package designed to target a distinct aspect of Russia’s malign behavior and reinforce the UK’s commitment to global security and the rule of law.

Note: The full list of 18 Russian oil tankers and 4 liquified natural gas tankers can be found here.

Photo credit: Nick Fewings on Unsplash
Published: 18 October 2024

A US Energy Information Administration (EIA) report released on Monday (9 October) named Singapore among ports around the world involved in the export and sale of Iranian petroleum products. 

The Report on Iranian Petroleum and Petroleum Product Exports also named other ports in Asia including Malaysia, Taiwan, Thailand, South Korea and China. 

Vitol, East Asia General Trading, ENOC, Max Energy, MRPL, Naftiran Intertrade Company Limited and Voliton were among the listed companies and vessels involved in the export and sale of Iran’s petroleum and petroleum products.  

The report found that Iran made USD 53 billion to USD 54 billion in 2022 and 2023 in revenue for petroleum exports and sales, which is a huge jump from USD 37 billion made in 2021 and USD 16 billion made in 2020. 

The U.S. Energy Information Administration (EIA) prepared this report to fulfil Section 4 of the Stop Harbouring Iranian Petroleum Act, or the SHIP Act, enacted on April 24, 2024. 

The act requires that no later than 120 days from the enactment date and annually thereafter the Administrator of EIA submit a report describing “Iran’s growing exports of petroleum and petroleum products” to the appropriate congressional committees.

The act details 11 elements to be included in the report, including information on Iran’s export and sale of petroleum and petroleum products, Iran’s labelling practices of exported petroleum and petroleum products, and companies, ships, and ports involved in the export and sale of Iran’s petroleum and petroleum products.

The report noted that “because of challenges with data availability and transparency, nearly all the petroleum and petroleum product data presented in this report are estimates rather than actual data”.

In November 2018, the United States officially reimposed all sanctions that were lifted under the 2015 Iran nuclear deal. After a six-month waiver expired in May 2019, Iran was under complete sanctions on oil exports.

Note: The Report on Iranian Petroleum and Petroleum Product Exports can be found here.

Photo credit: CHUTTERSNAP on Unsplash
Published: 14 October, 2024