The European Union plans to introduce sanctions against the "shadow fleet" of Russia. Such restrictions will be included in the next package of sanctions.
Points of attention
- The European Union is preparing to introduce sanctions against Russia's 'shadow fleet' used for oil transportation, aiming to disrupt the profitable operations of over 400 ships.
- Proposed measures might include trade restrictions and higher tariffs on Russian agricultural goods, with possible implementation by the end of the year or early next year.
- Western countries are reacting to the surge in oil transportation by the shadow fleet with sanctions, highlighting the ongoing efforts to counter Russia's activities.
- The EU faces challenges in securing unanimous approval for sanctions due to potential veto power from countries like Hungary, complicating the process of implementing targeted restrictions.
- Russia's increasing reliance on the shadow fleet, which has seen a significant rise in oil transportation volumes, underscores the urgency for action to curb its impact on global markets.
The European Union wants to end the shadow fleet of the Russia
The European Union plans to adopt a new package of sanctions against the Russian Federation by the end of the year: it will apply to the Russian "shadow fleet"
EU member states are still negotiating the details of the sanctions, as they must be approved unanimously. The publication points out that in recent months it has become increasingly difficult for the EU to approve sanctions packages, as Hungary often uses its veto power.
The package of sanctions is expected to include restrictions against individuals involved in the trade, as several rounds of US, UK and EU sanctions have already hit dozens of tankers, as well as ships and services used to transport Russian oil.
According to the publication, the EU is also working on a broader package of sanctions, which they intend to adopt early next year, when the presidency of the bloc will pass from Hungary to Poland. It may include further trade restrictions, as well as increased tariffs on Russian agricultural goods.
The package could be introduced as early as January to be passed by the symbolic date of February 24, the third anniversary of Russia's full-scale invasion.
Russia has increased its shadow oil fleet
The volume of the aggressor country's oil carried by the shadow fleet of tankers increased from 2.4 million barrels per day in June 2023 to 4.1 million in June 2024.
In particular, the tendency to increase the number of tankers in the shadow fleet is observed against the background of the increasingly frequent introduction of sanctions by the USA, Canada, Japan and EU countries regarding sanctions against international insurance companies and shipowners.
Russia has assembled a "shadow fleet" to export oil after the G7 imposed a price ceiling on Russian oil at $60 a barrel.
The Russian "shadow fleet" consists of more than 400 ships. They bring the Russian Federation billions of dollars in profit per year.
