Britain has announced new sanctions against the Russian oil industry, which include two oil companies and 12 shadow tankers. This action, announced on October 8, 2023, is part of a package of 38 sanctions that places over 90% of Russia's oil production capacity under British sanctions.
Details of the Sanctions
The oil companies "Zarubezhneft" and "INK Capital" have been added to the new sanctions list. These two companies have come under pressure following previous sanctions against the largest oil producers in Russia, including "Rosneft" and "Lukoil." British officials have stated that these sanctions are designed not only to limit Russia's oil revenues but also to make it more difficult for sanctioned producers to sell oil.
The recent sanctions also include 12 shadow tankers, bringing the total number of shadow tankers under British sanctions to over 600. Among them, the 22-year-old tanker "Dakar," which was passing through the Northern Sea route of Russia, has been identified as one of the newly sanctioned tankers. These sanctions come as the use of the Arctic maritime corridor by the old and sanctioned fleet for transporting Russian energy exports to Asian markets is increasing.
Challenges and Consequences
The new sanctions are imposed at a time when the global tanker market is facing serious challenges. Charter rates for tankers have surged due to conflicts in the Middle East and increased demand for available ships. Meanwhile, the U.S. government is considering the possibility of easing sanctions on some sanctioned tankers to reduce pressure on charter rates, although this decision would not mean facilitating the transportation of Russian oil.
British Finance Minister John Healey has urged other countries to impose more international restrictions on maritime services that assist the Russian shadow fleet. This reflects the differing approaches of London and Washington in dealing with the Russian oil industry. While the United States may ease some restrictions, British and European sanctions will remain in place and could limit tankers' ability to obtain insurance and other maritime services.
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