By GMM News | 2024-06-19 | International Shipping News |

On June 13, the UK declared its first specific sanctions against the tankers in the shadow fleet, moving Russia’s oil as part of a broader effort in association with the G7 nations at the beginning of the summit in Italy.

The most recent sweeping effort that the UK mentioned involved about 50 entities and individuals, targeting the Russian financial system and suppliers supporting Russian military production.

In announcing the new initiative, the government further asserted that, since February 2022, the initiatives have been depriving Russia of more than $400 billion worth of assets and revenues.

It also highlights that Russia derives about one-third of federal revenues via taxes on the oil industry.

Today, efforts are being made to ramp up economic pressure via sanctions to cut down Russia’s efforts to fund war machinery.

PM Rishi Sunak stated that Putin has to lose, and cutting off his ability to fund such a prolonged conflict is crucial.

In a unique initiative, the UK also enlisted three crude oil tankers and a product tanker, as well as two Russian-flagged cargo vessels used to transport weapons.

One of the cargo vessels dubbed the Lady R, has turned out to be notorious, including a middle-of-the-night port call in December 2022 in South Africa that caused a political firestorm.

The vessel was also spotted in North Korea and China, and it transited the Bosphorus on its way into and out of the Black Sea.The other cargo vessel listed is the Angara.

The PM cited no specific reasons why the individual tankers were selected for the first effort under the newly passed legislation in the UK.

Three of these are the crude oil tankers Ocean AMZ and NS Laguna and the product tanker Canis Power, which are managed via Dubai.

Two are registered with the Cook Islands, while one is with Gabon. Robon, the other crude oil tanker, is managed via Kazakhstan and flagged in Cameroon.

The action prohibits the vessels from entering ports in the UK. It bars the transport of Russia’s oil products.

The UK is enlisting Ingosstrakh Insurance Co., which is now being referred to as one of the leading providers of insurance coverage for the tanker fleet.

It became more significant when Russia was fully barred from the insurance markets of the UK and Europe.They further enlisted One Moon Marine Services as a vessel manager.

The Western sanctions were levied as Russia reportedly extended a decree that wanted to undermine the G7 price cap.Reuters reported that Russia’s website is posting an extension for the decree from Vladimir Putin prohibiting adherence to the actions prescribed in the price cap initiative.

The UK’s action also targets firms in the LNG and civil nuclear sectors, the financial system, munitions suppliers and other related businesses, and six individuals.They further listed two entities in Africa associated with the notorious Wagner Group.

Since the war began in Ukraine, the UK highlighted that it had imposed restrictions on 29 banks and more than 130 oligarchs.

Over £20 billion of UK-Russian bilateral trade (2021 estimates) is currently under full or partial sanction.

Russian imports into the UK declined by 99%, and UK exports to Russia declined by 73%.

Reference: TradeWind