UK Sanctions 135 Russian Shadow Fleet Tankers Over Illegal Oil Trade
The United Kingdom has recently imposed a new wave of sanctions, announced on July 21, specifically targeting Russia's oil sector. This move aims to diminish Russia's capacity to finance its ongoing war in Ukraine.
The sanctions encompass regulations on 135 oil tankers along with Russian-associated companies involved in the transport and trade of Russian oil. These tankers are part of what’s referred to as Russia's shadow fleet, which has been responsible for the transport of around $24 billion worth of oil shipments since the beginning of 2024. This fleet is crucial for Russia's energy and oil industry, which significantly supports its military endeavors.
In addition to the tankers, several companies have also come under fire. For instance, Intershipping Services LLC has been highlighted for its pivotal role in registering shadow fleet vessels under the Gabonese flag. This maneuver allowed the fleet to transport goods valued at up to $10 billion for the Russian government annually. Another target is Litasco Middle East DMCC, a Dubai-based oil trading firm linked to Lukoil, one of Russia's major oil companies, for its continued large-scale transport of Russian oil.
The UK government emphasized that these 137 sanctions—including the 135 tankers and various firms—strike directly at the heart of Russia's energy sector, aiming to cut off Putin's access to crucial oil revenues.
This latest round of sanctions follows the UK and EU's decision to lower the crude oil price cap from $60 to $47.60 per barrel. According to government statistics, Western sanctions have led to a yearly decline in Russia's oil and gas revenues since 2022. The cumulative losses now exceed a third of the total revenue the country previously generated from these resources.
The UK has pointed out that these financial losses, combined with the ongoing costs of warfare, are contributing to a slowdown in the Russian economy. Reports indicate that Russia's wealth fund is dwindling, inflation is rising, and there’s a sharp increase in spending on defense and security.
However, Russia continues to argue that Western sanctions are illegal and disrupt the global energy market.
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