EU Sanctions Oil Traders While Ukraine Sanctions Majority of Shadow Fleet

In an effort to continue to keep the pressure up on Russia, and specifically targeting oil revenues, the European Union’s Council is targeting the traders and operators that it says support the Russian oil trade. At the same time, Ukraine sanctioned nearly the entire shadow fleet while saying it would continue to work with its partners to block the vessels generating funds to prolong the war.

The Council of the European Union highlights that the EU has already sanctioned over 2,600 individuals and entities, but in the latest step, it is targeting businessmen and entities linked directly to the major Russian state-owned oil companies Rosneft and Lukoil. The Council announced it was adding nine “shadow fleet enables” to its sanctions today, December 15. Reuters also quotes analysts as saying it is likely the EU will add at least 40 more tankers to its sanctions listing.

“The entities targeted today are shipping companies based in the United Arab Emirates, Vietnam and Russia, which own or manage tankers that are subject to restrictive measures imposed by the EU or by other countries for being part of Russia’s shadow fleet, and that transport crude oil or petroleum products while practicing irregular and high-risk shipping practices,” according to the official announcement.

The European Union accuses the companies of “practicing irregular and high-risk shipping practices. It highlights that they are targeting traders in the oil and companies that control the vessels and work to conceal the actual origin of the oil products.

Among the individuals are Murtaza Lakhani, who has been previously linked by reporting by Bloomberg and the Financial Times, to the oil trade. He is reported to have control over multiple companies in the United Arab Emirates that are linked to the oil exports. His lawyers call the charges “unfounded.”

Among the entities are 2Rivers Group, aka Coral Energy, which has frequently been linked to many of the shadow fleet tankers. Another company, Nova Shipmanegement, has been linked to Omani-flagged tankers that were reported to be involved in the oil transfers.

Ukrainian President Volodymyr Zelenskyy over the weekend also reported that Ukraine had sanctioned nearly 700 additional vessels, which he called a significant part of the shadow fleet transporting Russia’s oil. He said it was the largest sanctions package specifically targeting tankers reporting they were not only Russian-flagged vessels but also under the flags of more than 50 jurisdictions.

“We support the concept of a complete ban on providing maritime services to vessels involved in the export of Russian energy carriers. Pressure on Russia and diplomacy for the end of the war must go hand in hand to achieve the necessary result,” wrote Zelenskyy, announcing the latest move.

It is part of a wider campaign seeking to pressure Russia in the peace negotiations by cutting the revenues from the oil sector.