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UK Launches Largest Sanction Package Against Russia’s Shadow Tanker Fleet

tanker
UK launched the largest sanction effort yet on the shadow fleet (file photo)

Published Nov 25, 2024 1:51 PM by The Maritime Executive

 

The UK government launched its largest sanction package yet against the shadow tanker fleet while urging other nations to follow in tightening their efforts and showing support for Ukraine. The latest sweeping action which encompasses 30 tankers and two insurance companies is being highlighted as part of an aggressive move by the UK government against the clandestine oil trade.

“The shadow fleet also poses significant risks to global trade. Many of the ships engage in deceptive shipping practices and are a danger to the environment – many tankers flagrantly ignore basic safety standards, increasing the chance of catastrophic oil spills,” the UK said detailing its latest moves. “Constraining these revenues, including by cracking down on the companies that insure these vessels, is vital for maintaining our shared security.”

The effort is one of the most sweeping seen since the West began efforts to limit Russia’s oil trade and comes as the shadow fleet continues to grow. S&P Global released data earlier in the month reporting that its Commodities at Sea and Maritime Intelligence Risk Suite had identified 889 tankers of at least 27,000 dwt that had been used to transport sanctioned oil including from Russia, Iran, and Venezuela. They said the combined fleet represents over 111.6 million dwt and 17 percent of the global tanker fleet.

Whereas past UK efforts have mostly focused on vessels using international registries, today’s listing includes 11 vessels indirectly controlled by Sovcomflot through Invest Fleet in St. Petersburg and South Fleet. Nine of the listed tankers are reflected as being registered in Russia. The effort also sanctions two Russian companies, Alfastrakhovanie and VSK, which the announcement calls “dubious insurers,” for enabling the shadow fleet.  

Many of the vessels are being managed from India or China and show a broad range of flags. Predominantly the ships are registered in Panama with seven vessels, as well as in Gabon and Barbados and individual cases from Sierra Leone, Cook Islands, and Antigua and Barbuda. 

Several of the vessels are more clearly in the shadow fleet with unknown management and two vessels are listed in the Equasis database as having false flag data. The Valour (113,000 dwt) is reflected falsely reporting registry in Guinea and the Daksha (10,000 dwt) falsely identifies a Comoros registry.

Highlighting its efforts at cracking down on the shadow fleet, the UK reports on November 12 that it challenged a tanker Ksena (106,000 dwt) which shows Panama as its registry and management from Moldova. The tanker ignored the UK challenge and did not supply data on its insurance leading to it being included in today’s sanctions. 

The UK reports it has challenged 43 vessels with dubious insurance to supply their details as they pass through UK waters. The sanctions permit the UK to prohibit the tankers from entering UK ports and they cite as examples the tankers Artemis (117,000 dwt registered in Gabon) and Sea Fidelity (115,000 dwt registered in the Cook Islands) which the UK reports are idle in the Baltic since being sanctioned last month.

The UK reports it has now sanctioned 73 oil tankers which it notes is ahead of the U.S. which has listed 39 and the European Union which sanctioned 19 tankers. They said half of the vessels listed today alone transported more than $4.3 billion worth of oil and oil products like gasoline in the last year.

The new effort was announced as the UK Foreign Secretary David Lammy is beginning meetings with the G7 foreign ministers. UK Prime Minister Keir Starmer in July reported 46 countries and the EU were participating in the sanctions against the shadow fleet and Lammy will use the current meeting to push for further support. The EU is reported to be working on its next phase of sanctions after members of the European Parliament on November 14 overwhelmingly approved a new resolution calling for enhancing the enforcement of the price cap on Russian oil by cracking down on the shadow fleet.