UK sanctions more Russian tankers

The UK has imposed a fresh set of sanctions on Russia this week, targeting its energy, military and financial sectors.

IMAGE: Flags of the UK and Russia. Getty Images

The UK government has imposed sanctions on a total of 30 Russia-linked entities, including ship managers, shell companies, and 20 oil tankers, the country's Prime Minister Kier Starmer said while attending the G7 summit in Canada.

The vessels, which are allegedly part of Russia’s shadow fleet, have facilitated illicit oil trades, circumventing the G7 oil price cap, the UK government said in a statement. They have repeatedly conducted ship-to-ship (STS) transfers and manipulated automatic identification systems (AIS).

By assembling a shadow fleet of poorly maintained vessels that are used to circumvent sanctions meant to restrict the movement of Russian crude oil, Russia has effectively traded outside the imposed price caps, they said.

The UK has further sanctioned ship managers, including Orion Star Group and Valegro for managing these shadow fleet vessels, and oil trader Rosneft Marine (UK) for enabling sanctioned Russian oil trade.  

Earlier this month, the European Commission proposed its 18th package of economic sanctions against the Kremlin. The Commission proposed to lower the oil price cap on Russian crude oil from $60/bbl to $45/bbl, and raised the total number of vessels carrying Russian oil that it sanctions to 419.

The price cap on Russian oil, implemented by Washington and its allies (the G7 group of countries), is a strategic measure aimed at reducing Russia's export revenue. This limitation is intended to restrict the financial resources that Russia can allocate towards sustaining its military operations in Ukraine.

By Aparupa Mazumder

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