- 70 shadow tankers targeted in fresh clampdown.
- Price cap enforcement tightened with a new threshold.
- Shadow fleet reaches nearly 1,000 vessels.
The UK rolled out a fresh wave of sanctions on September 12, targeting Russian revenue streams with 100 new designations. This includes 70 tankers linked to Russia’s oil trade, as well as chemical manufacturers and drone makers. According to a government statement, this latest crackdown means the UK now has more sanctioned vessels than any other country, including the US and EU. This action comes as London ramps up its efforts to ensure compliance with the oil price cap and limit Russian energy exports, which make up about a third of Moscow’s income, reports S&P Global.
Tightening Price Cap Enforcement
To sidestep Western sanctions, Russia has been using a network of shadow tankers that operate outside the mainstream shipping routes. Since December 2022, shipowners have been prohibited from transporting oil priced above $60 per barrel. In response, the UK has implemented a dynamic price cap mechanism, which saw the threshold drop to $47.60 per barrel on September 2. Following the announcement of this cap adjustment in July, the UK sanctioned 135 tankers and a trading house linked to Lukoil in the UAE.
The Scale of the Shadow Fleet
Data from S&P Global Commodities at Sea and Maritime Risk Intelligence Suite reveals that the shadow fleet now consists of 978 tankers, each over 27,000 deadweight tons—accounting for nearly 20% of the global oil tanker fleet. According to CAS data, the 70 tankers sanctioned by the UK this week have transported 79.4 million barrels of crude and refined products from Russian ports since the beginning of 2024. They have also moved smaller quantities of oil from Iran and Venezuela, both of which are under significant Western sanctions. Platts recently noted that Russia, Iran, and Venezuela are increasingly collaborating to share this vessel pool to maintain their overseas oil exports.
Security Concerns and NATO Airspace Violation
The UK stated that the new sanctions are also a reaction to security threats. On September 10, reports emerged that Russia had launched drones into Polish airspace for the first time during the ongoing conflict.
“The UK will not stand idly by as Putin continues his barbaric invasion of Ukraine. His complete disregard for sovereignty has been shown this week when he recklessly sent drones into NATO airspace,” said Foreign Secretary Yvette Cooper.
Broader Sanctions on Russian War Supporters
In addition to the measures targeting tankers, the UK has now designated 30 entities and individuals that are tied to Russia’s military efforts. This list includes producers of chemicals, suppliers of electronics, and manufacturers of equipment that play a role in drone production. The UK government reports that Russia has launched over 800 missiles and drones at Ukraine in just the past two weeks, ten times the number of attacks recorded in July.
EU Plans Further Measures
As diplomatic talks hit a standstill, the EU is gearing up for its 19th sanctions package. Lawmakers in Brussels have indicated that the new measures will focus heavily on the shadow fleet, while also contemplating stricter actions against third countries and a quicker phaseout of Russian energy.
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Source: S&P Global
