The administration of US President Joe Biden, who leaves the White House on January 20, intends to introduce new sanctions against tankers carrying Russian oil in connection with the ongoing war in Ukraine. This was reported by Reuters on Sunday, January 5, citing two knowledgeable sources.
Specifically, the restrictions should apply to tankers carrying oil sold at a price higher than the Western price set at $60 per barrel and included in Russia’s so-called “shadow fleet.”
The Russian “shadow fleet” refers to tankers that sail under foreign flags, which Russia uses to circumvent the oil embargo imposed two years ago in connection with the war in Ukraine. The “shadow fleet” uses old and often uninsured tankers, which export crude oil and petroleum products from the Russian Federation, bypassing international sanctions.
Russian oil price ceiling
Russia is one of the world’s three largest oil producers. As Reuters reminds, after Western countries introduced the maximum permissible price for oil from the Russian Federation (price ceiling) at the end of 2022, Russia redirected its oil for sale to China and India. In these markets it is sold at large discounts relative to world prices, but still more profitable than at the acceptable price established in the West.
One of the interlocutors told the agency that the package of sanctions being prepared by the outgoing Biden administration is “massive.” Another source indicated that it would likely include sanctions against people associated with networks involved in selling Russian oil at prices above the established ceiling.
Russia’s “shadow fleet” and Western sanctions
In mid-December 2024, the foreign ministers of the European Union approved the 15th package of sanctions against Russia for its aggressive war against Ukraine. Among other things, restrictions were introduced against 52 ships from third countries that are part of the “shadow fleet” of the Russian Federation. Thus, the total number of ships under EU sanctions reached 79 by that time. They were prohibited from entering EU ports and receiving services from European companies. The European Union also imposed sanctions against Russian defense and shipping companies responsible for transporting crude oil and petroleum products by sea.
Also in mid-December, it became known that 12 European countries – Germany, Great Britain, Poland, the Netherlands, five Nordic countries and three Baltic countries – agreed to work together to counteract the Russian “shadow fleet”. The UK, Denmark, Sweden, Poland, Finland and Estonia are now checking the insurance documents of suspicious ships traveling through the English Channel, the Danish Straits, and the Gulf of Finland. The information collected, including on vessels that refuse to respond to requests, will be analyzed jointly with international partners.
With the help of these measures, European countries expect not only to limit Russia’s income from energy exports, which allows it to wage war in Ukraine, but also to increase the environmental safety of the region. Environmentalists have determined that almost 200 tankers of the “shadow fleet” are outdated and should be taken out of service. In recent years, they have caused several oil and petroleum product spills.
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Source: www.dv.ee
