Released July 22, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Hosting Ukrainian President Volodymyr Zelenskyy, the U.K. government said it agreed with its European counterparts to take tougher action against Russian vessels skirting oil-related sanctions.
A major initiative was announced to crack down on Russia's so-called shadow fleet, which may be using a variety of ways to mask their origin or cargo to avert Western-backed sanctions stemming from its 2022 invasion of Ukraine.
"The 'shadow fleet' comprises ships engaged in illegal operations for the purposes of circumventing sanctions, evading compliance with safety or environmental regulations, avoiding insurance costs or engaging in other illegal activities," a joint statement said.
The parties called on members of the International Maritime Organization, a U.N.-backed agency, to do what they can to prevent what the parties consider illegal activity in the maritime sector.
Western powers have enacted a series of sanctions targeting Russia since the invasion began in February 2022, with the European Union (EU) announcing sweeping restrictions in June related to Russia's liquefied natural gas (LNG) sector. A ban on Russian crude oil was adopted in June 2022, though exceptions were made for land-locked countries that depend on piped products.
The EU said restrictions on oil, however, cover 90% of the EU's current oil imports from Russia.
The British prime minister's office said Russia's shadow fleet is 600 strong, carrying an estimated 1.7 million barrels of oil per day (BBL/d), which Downing Street said had generated "significant" funds for Russia's war chest.
By comparison, the U.S. exported around 4 million BBL/d over the seven-day period ending July 5.
A report from the Center for European Policy Analysis (CEPA) put the total number in the shadow fleet at closer to 1,400 worldwide, adding that much of the illicit activity allegedly occurs in the Baltic Sea.
CEPA added that sanctions are at times difficult to enforce because of various flag registrations, with ships flying under the Gabonese banner, for example, due to a lack of expertise in maritime law. The British government also said some Russian ships are changing names to avoid scrutiny.
Meanwhile, a right to "innocent passage" means vessels aren't always blocked.
British Prime Minister Keir Starmer said the latest joint initiative with Europe is nevertheless sending a clear message to the Kremlin.
"We will not allow Russia's shadow fleet, and the dirty money it generates, to flow freely through European waters and put our security at risk," he said.
The U.K. said it was able to halt tankers carrying an estimated 13 million barrels of illicit Russian crude oil and oil-related products since January, with the cargo's value estimated at $930 million.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
A major initiative was announced to crack down on Russia's so-called shadow fleet, which may be using a variety of ways to mask their origin or cargo to avert Western-backed sanctions stemming from its 2022 invasion of Ukraine.
"The 'shadow fleet' comprises ships engaged in illegal operations for the purposes of circumventing sanctions, evading compliance with safety or environmental regulations, avoiding insurance costs or engaging in other illegal activities," a joint statement said.
The parties called on members of the International Maritime Organization, a U.N.-backed agency, to do what they can to prevent what the parties consider illegal activity in the maritime sector.
Western powers have enacted a series of sanctions targeting Russia since the invasion began in February 2022, with the European Union (EU) announcing sweeping restrictions in June related to Russia's liquefied natural gas (LNG) sector. A ban on Russian crude oil was adopted in June 2022, though exceptions were made for land-locked countries that depend on piped products.
The EU said restrictions on oil, however, cover 90% of the EU's current oil imports from Russia.
The British prime minister's office said Russia's shadow fleet is 600 strong, carrying an estimated 1.7 million barrels of oil per day (BBL/d), which Downing Street said had generated "significant" funds for Russia's war chest.
By comparison, the U.S. exported around 4 million BBL/d over the seven-day period ending July 5.
A report from the Center for European Policy Analysis (CEPA) put the total number in the shadow fleet at closer to 1,400 worldwide, adding that much of the illicit activity allegedly occurs in the Baltic Sea.
CEPA added that sanctions are at times difficult to enforce because of various flag registrations, with ships flying under the Gabonese banner, for example, due to a lack of expertise in maritime law. The British government also said some Russian ships are changing names to avoid scrutiny.
Meanwhile, a right to "innocent passage" means vessels aren't always blocked.
British Prime Minister Keir Starmer said the latest joint initiative with Europe is nevertheless sending a clear message to the Kremlin.
"We will not allow Russia's shadow fleet, and the dirty money it generates, to flow freely through European waters and put our security at risk," he said.
The U.K. said it was able to halt tankers carrying an estimated 13 million barrels of illicit Russian crude oil and oil-related products since January, with the cargo's value estimated at $930 million.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
