Russian oil tanker. The Liberian-flagged oil tanker Ice Energy (L) transfers crude oil from the Russian-flagged oil tanker Lana (R) (former Pegas), off the shore of Karystos, on the Island of Evia, on May 29, 2022. On December 11, 2024, the European Union announced new sanctions against Russia's 'ghost fleet' of oil tankers. ANGELOS TZORTZINIS/AFP via Getty Images/Getty Images
Russia's "Ghost Fleet" of oil tankers are facing a new round of sanctions from the European Union (EU) amid the ongoing war with Ukraine.
The Sanctions
EU envoys have approved a new package of sanctions against Russia over its war in Ukraine with a focus on a vast shadow fleet of ships Moscow uses to evade restrictions on oil and fuel transport, the EU's Hungarian presidency announced Wednesday.
The sanctions target around 50 ships described as aging and often decrepit that are reportedly operating illegally to evade restrictions. Hungary said the measures are intended to "constrain the activity" of vessels that "contribute or support actions or policies supporting Russia's actions against Ukraine."
The sanctions package will also target additional officials and entities, including organizations, companies, banks and government agencies, particularly in countries aiding Russia in advancing its military technology by circumventing export restrictions.
EU foreign ministers are set to formally approve the sanctions package on Monday. The specific details of the individuals and entities targeted will be disclosed when the measures are published in the EU's official legal journal.
Past Sanctions Against Russia
Since President Vladimir Putin launched the invasion of Ukraine in February 2022, the EU has implemented multiple rounds of sanctions against Russia, and more than 2,300 individuals and entities are now subject to restrictive measures.
The sanctions have hit Russia's energy sector, banks, major businesses, markets and the world's largest diamond mining company. They also include asset freezes and travel bans on Putin, his inner circle and dozens of Russian lawmakers.
Russia's "Ghost Fleet"
In October, the Kyiv School of Economics Institute (KSE) think tank raised alarms over the ecological dangers of the "shadow fleet" that the Kremlin uses to circumvent a G7 ban on firms from insuring, financing and shipping Russian seaborne oil exports sold above $60 a barrel.
The goal of the price cap was to choke revenues fueling Putin's war machine, but Moscow has responded by transporting oil through vessels whose ownership is reorganized to hide Russian links, often through shell companies.
Despite this crackdown, Russia has expanded the capacity of oil transported by its shadow fleet of oil tankers by almost 70 per cent year on year, from 2.4 million barrels per day in June 2023 to 4.1 million in June 2024, the KSE said in its report.
Benjamin Hilgenstock, a senior economist at KSE Institute and the report's co-author told Newsweek in October that "so far, we have been lucky because either an incident was narrowly avoided or, when it happened, the vessel was empty. But it's really a question of time until that luck runs out."
This article includes reporting from The Associated Press.
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This story was originally published December 11, 2024, 3:08 PM.