Australia Imposes Its First Shadow Tanker Sanctions Following UK’s Increase

 

The efforts continue to target the shadow tanker fleet as a means of choking off Russia’s oil exports. As the G7 leaders and other countries' representatives met in Canada this week, Australia launched its first sanctions on shadow tankers while the UK again expanded its efforts.

Australia joined with the other countries in calling for an immediate end to the war in Ukraine and a withdrawal from Ukrainian territory. The country’s Ministry of Foreign Affairs highlights that Australia has imposed over 1,400 sanctions in response to Russia’s invasion of Ukraine, and now it is also targeting tankers.

A total of 60 tankers were listed with the ministry highlighting that under Australian law the vessels are not required to be owned, registered, or flagged in Russia. Also, under its sanction regime, a vessel cannot escape the sanctions with a name or flag change. Australia can direct a sanctioned vessel to leave its ports and not to enter a particular port.

“These sanctions reinforce Australia’s consistent commitment to ensuring Russia, and those enabling its illegal invasion of Ukraine, face consequences,” said Foreign Minister Penny Wong.

While speaking at the G& Summit, Sir Kier Starmer, the UK’s Prime Minister, also announced his country’s latest package of sanctions. He said the new round includes 30 entities across Russia’s financial, military, and energy sectors.

“We know that our sanctions are hitting hard, so while Putin shows total disregard for peace, we will not hesitate to keep tightening the screws,” said Starmer. “His repeated refusals to engage seriously in peace has redoubled the UK’s resolve to apply a stranglehold on the Russian economy.”

The UK listed 20 additional tankers. This followed what it called its largest package launched in May which targeted up to 100 tankers. The UK had also previously listed 133 tankers, while the EU has now listed over 300 tankers.

Beyond tankers, the UK also listed two firms involved in crewing and managing the shadow fleet. It said that Orion Star Group and Valegro were helping to enable Russia’s oil trade with their efforts supporting the shadow fleet.

During the talks at the G7, the EU and UK were both advocating for a lowering of the price cap imposed on Russian oil exports. The $60 per barrel was challenged in the spring when oil prices receded but now with tensions in the Middle East oil has jumped to over $75 a barrel. Oil markets remain very nervous waiting for a possible U.S. action against Iran.