U.S Imposes Sanctions On Russian Tankers Still Under Construction For The First Time

The U.S. has sanctioned six Russian oil tankers that are still being built. This is the first time the U.S. has ever sanctioned ships before they’ve even set sail.

These sanctions were announced last week and have already increased shipping costs worldwide.

A review of the sanctions shows that six tankers being built at Russia’s Zvezda shipyard are affected. The tankers include Alexander Beggrov, Alexey Bogolyubov, and Nursultan Nazarbayev.

Three others, called Zvezda 131080, Zvezda 131060, and Zvezda 131040, have not yet been named.

The sanctions target two Russian companies: Sovcomflot, which is the shipping arm of Rosneft, and Rosnefteflot, another part of Rosneft.

Sovcomflot is buying Alexander Beggrov and Alexey Bogolyubov, while Rosnefteflot is buying the other four tankers. Both companies are also under U.S. sanctions.

Representatives from Rosneft and Zvezda have not responded to requests for comments. Neither Sovcomflot nor Russia’s Ministry of Transport has commented either. The U.S. Treasury Department did not immediately reply when asked for a statement.

The U.S. sanctions are aimed at Russia’s “shadow fleet,” a group of ships used to avoid a price cap on Russian oil set by the G7 countries.

This cap, which started in late 2022, bans Western insurers and shipping companies from handling Russian oil sold for more than $60 a barrel.

By sanctioning ships still under construction, the U.S. aims to stop Russia from completing these vessels and using them for oil trade.

Experts believe the sanctions will make it harder for Russia to finish the tankers. One source said it will be difficult for Russia to justify the cost of completing the ships under the current conditions.

According to recent shipping data, Russia is already facing a shortage of tankers to transport its oil. More than 60% of the oil tankers listed have recently entered Russian ports. This tanker shortage has already led to a big increase in global shipping rates.

Zvezda, established in 2015, is Russia’s leading shipyard and the only one able to build large oil and gas tankers. Last week, Zvezda itself was also sanctioned by the U.S., adding more pressure to Russia’s oil shipping operations.

Reference: Reuters

Source: Maritime Shipping News