Sanctions On Russian Oil Tankers Have Not Stopped Them From Transporting Oil

The sanctions imposed on Russian shadow fleet oil tankers have not stopped them from transporting oil, with nearly one-third of the sanctioned ships back in operation.

Since their blacklisting, at least 21 of the 72 vessels sanctioned by the US, UK, and EU have carried 24 cargoes of Russian oil.

Data from vessel tracking shows that these tankers are being put back to work faster, with seven of them loading oil in the first ten days of October.

The data shows a clear rise from previous months when only six oil tankers were operating in August and September.

The sanctioned ships remained inactive initially, and none carried oil until April 2024, six months after they were first targeted.

Since then, their usage has increased as consumers gain confidence and workarounds are found.

The U.S. first imposed sanctions on Russian tankers on October 12, 2023, targeting two ships, Yasa Golden Bosphorus and SCF Primorye, for transporting oil worth above a $60 per barrel cap meant to limit Russia’s profits.

The UK followed in June 2024, naming several ships and the EU soon after.

However, the impact of these sanctions has varied. The UK sanctions have been the least effective, with nearly two-thirds of the oil shipments since the sanctions being carried by vessels blacklisted by London.

The UK sanctioned all active tankers in September and October, but the EU sanctioned only one.

This means that two-thirds of the UK-sanctioned ships are now back in service. On the other hand, U.S. sanctions have been proven more effective. Only 4 of the 39 vessels sanctioned by the U.S. have carried oil, transporting six cargoes.

Many of these ships have been inactive for almost a year.

Around 50 of the sanctioned ships have been renamed and reflagged, with 13 now sailing under the Barbados flag.

Most of the oil transported by these tankers is sent to China, with around one-third being delivered to India.

At first, most of these shipments were loaded in Russia’s Black Sea Port of Novorossiysk.

More recent shipments have been picked up from other Russian export ports as the UK began to target ships operating out of Russia’s Pacific ports.

Even if some of the sanctioned ships have returned to service again, they comprise only a small part of Russia’s large shadow fleet for oil transportation.

Reference: BNN Bloomberg

Sanctions On Russian Oil Tankers Have Not Stopped Them From Transporting Oil appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News