- Western Powers Weigh Shipping Ban to Cut Russian Oil Revenues.
- Maritime Ban on Russian Oil Could Replace Existing Price Cap.
- G7 and EU Eye Shipping Clampdown on Russian Crude.
The Group of Seven (G7) nations, along with the European Union, are in talks about potentially replacing the current price cap on Russian oil exports with a complete ban on maritime services, as reported by six sources who are in the know. This proposed action aims to further diminish the oil revenues that are funding Russia’s ongoing war in Ukraine, reports Reuters.
Impact on Western Tanker Trade
Russia relies on Western tankers and shipping services for over a third of its oil exports, with the majority of these shipments going to India and China. This trade heavily depends on vessels operated by EU maritime countries like Greece, Cyprus, and Malta. If a ban on maritime services is put in place, it would effectively shut down this trade route. The remaining two-thirds of Russian oil exports are moved by a “dark” or “shadow” fleet that operates outside of Western regulations and maritime safety standards. Should the ban be enacted, Russia would have to significantly bolster this fleet to keep its export levels steady.
Possible Inclusion in Next EU Sanctions Package
There’s a chance that the maritime services ban could be part of the EU’s upcoming sanctions package against Russia, which is anticipated to roll out in early 2026, according to three sources. EU officials are looking to coordinate this move with a broader agreement from the G7 before making a formal proposal. Reports suggest that British and U.S. officials are pushing this proposal during technical discussions within the G7.
Any final decision from the United States will hinge on the strategy of President Donald Trump’s administration, especially in light of the ongoing peace negotiations between Ukraine and Russia that Washington is facilitating.
Closest Step Toward a Near-Total Oil Ban
Although the G7 and EU have largely ceased importing Russian oil since 2022, this proposed measure would represent the most significant step yet to cut off not just imports but also the transportation and maritime services associated with Russian crude and fuel. Government agencies in the U.S., UK, EU, Canada, Cyprus, and Greece have not yet responded to requests for comment.
Shifts Under the Trump Administration
The Trump administration has adopted a more cautious approach regarding the oil price cap, choosing not to back Britain, the EU, and Canada when they decided to reduce the cap from $60 to $47.6 per barrel in September 2025. By October, a staggering 44% of Russian oil exports were being transported by sanctioned shadow-fleet tankers, as reported by the Centre for Research on Energy and Clean Air. Additionally, 18% was moved by non-sanctioned shadow fleet vessels, while tankers linked to G7 countries, the EU, and Australia accounted for 38%.
The Scale of the Shadow Fleet
Lloyd’s List Intelligence reveals that the fleet responsible for transporting sanctioned oil from Russia, Iran, and Venezuela consists of 1,423 tankers, with 921 of them currently under U.S., UK, or EU sanctions.
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Source: Reuters
