The European Commission is moving closer to implementing a new round of sanctions targeting Russian oil tankers, as part of ongoing efforts to enforce the G7 price cap on Russian oil. The sanctions, which could include two separate rounds, follow similar actions by the UK earlier this week and a vote by the European Parliament two weeks ago in favor of tougher measures.
Sources speaking to Reuters and Bloomberg provided details on what would be the fifteenth round of sanctions since Russia’s invasion of Ukraine. Experts note that Russia’s continued revenue from oil and gas exports is a key driver behind the EU’s push to tighten the enforcement of the price cap.
Reports indicate that the new sanctions package could affect up to 48 crude oil tankers. While the UK and US have already sanctioned a large number of vessels, the EU has been slower in listing tankers. The UK recently added 30 tankers to its sanctions list, including crude oil tankers and some product carriers. These vessels were linked to the Russian state-owned shipping company Sovcomflot or had unclear ownership or insurance coverage.
As of now, the UK has sanctioned 73 oil tankers, and the US has listed 39. In contrast, the EU has only sanctioned 19 tankers. This disparity has drawn criticism, as EU officials recognize the importance of addressing illicit oil trade to curb Russian revenues.
Environmental concerns are also fueling the push for stricter sanctions. Frontline CEO Lars Barstad, whose company operates one of the world’s largest fleets of crude oil tankers, expressed concern about the growing “shadow fleet” involved in illegal oil trading. Barstad called for more efforts to control tanker operations, noting that the rise in sanctioned oil trade was affecting both his company and the broader industry. He also criticized the lack of effective enforcement of sanctions.
In addition to sanctions on tankers, the EU is planning to target 29 entities and 54 individuals. Reuters reports that over 2,200 sanctions have been imposed since Russia’s invasion of Ukraine. Further measures could include tightening restrictions on Russian gas imports and efforts to prevent third parties from circumventing the sanctions.
While some EU countries are still bound by existing Russian gas contracts, Germany has already instructed its LNG terminals not to accept Russian gas. The EU’s latest sanctions package is expected to be presented by December, with speculation that a broader initiative may follow in 2025 under Poland’s upcoming presidency of the EU.
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