The United States Treasury has come down harder on Russian energy exports, targeting the so-called “shadow fleet” of Russian crude and product tankers in a raft of new sanctions released this week.
After Russia invaded neighboring Ukraine in February 2022, the G7 nations imposed sanctions on Russian energy exports – the main driver of the country’s economy. Ever since, they have circumvented sanctions and delivered crude and petroleum products in a large fleet of often old, uninsured vessels whose ownership is opaque and who sail under a flag of convenience.
These ships hide at sea by turning off their location tracking equipment and transfer embargoed cargo ship-to-ship away from shore. Ship-to-ship transfers of crude and petroleum products is risky and threaten coastal ecosystems. Estimates put the fleet at 1,400 ships.
The latest round of sanctions target Russian energy companies and their subsidiaries, including Gazprom Neft and Surgutneftegas, as well as oilfield services companies, oil traders, insurance companies and several officials.
Although not singled out, the Treasury lists several product carriers and lubricant subsidiaries such as Gazpromneft Lubricants in an attempt to cripple the Russian economy and choke funds paying for Putin’s military campaign.