On January 6, 2025, sources reported that the outgoing administration of US President Joe Biden is preparing a significant sanctions package targeting tankers transporting Russian oil. These sanctions are aimed at individuals involved in selling oil above the price cap established by Western nations.
The sanctions will specifically affect tankers that transport oil sold for more than the $60 per barrel price cap, particularly those operating within Russia's so-called 'shadow fleet.' This fleet consists of tankers sailing under foreign flags, which Russia employs to circumvent an oil embargo imposed two years ago due to the ongoing conflict in Ukraine.
Following the introduction of the price cap in late 2022, Russia redirected its oil exports to markets in China and India, often at substantial discounts compared to global prices. Despite these discounts, sales remain more profitable than adhering to the Western-imposed price ceiling.
One source described the upcoming sanctions as 'substantial,' indicating that they could include measures against individuals linked to networks selling Russian oil above the established price limit. In mid-December 2024, EU foreign ministers approved a 15th sanctions package against Russia, which included restrictions on 52 vessels from third countries that are part of the shadow fleet, bringing the total number of EU-sanctioned vessels to 79.
The EU has prohibited these vessels from entering its ports and receiving services from European companies. Additionally, sanctions have been imposed on Russian defense and shipping companies responsible for maritime transportation of crude oil and petroleum products.
In December, twelve European countries, including Germany, the UK, and Poland, agreed to collaboratively address the Russian shadow fleet. Authorities from the UK, Denmark, Sweden, Poland, Finland, and Estonia are now scrutinizing the insurance documents of suspicious vessels in the English Channel, Danish Straits, and the Gulf of Finland, with information being shared with international partners.
These measures aim to not only restrict Russia's revenue from energy exports, which fund its military actions in Ukraine, but also enhance regional environmental safety. Environmentalists have noted that nearly 200 tankers in the shadow fleet are outdated and should be decommissioned, as they have been linked to several oil spills in recent years.