UK sanctions up to 100 shadow fleet vessels in largest Russian sanctions package to date

By Ryan Hewlett

May 9 - (The Insurer) - The UK government has expanded its list of sanctioned entities with up to 100 new oil tankers targeted in its largest shadow fleet-focused sanctions package to date.

Downing Street said on Friday that the action will be taken against the vessels which have collectively carried more than $24 billion worth of cargo since the start of 2024, with some vessels also involved in damaging critical infrastructure.

Prime Minister Keir Stamer is expected to make the announcement at the Joint Expeditionary Force meeting in Oslo on Friday. The action is designed to apply further pressure on Russia’s economy.

Protecting subsea infrastructure from malicious and careless incidents is expected to be a key part of leaders’ discussions at the summit in Oslo.

“Every step we take to increase pressure on Russia and achieve a just and sustainable peace in Ukraine is another step towards security and prosperity in the UK,” Starmer said.

“The threat from Russia to our national security cannot be underestimated, that is why we will do everything in our power to destroy his shadow fleet operation, starve his war machine of oil revenues and protect the subsea infrastructure that we rely on for our everyday lives.”

This is the latest occasion where the UK government has targeted vessels as part of its attempted crackdown on the shadow fleet.

In December, Britain imposed sanctions on 20 shadow fleet ships involved in the illicit trade and distribution of sanctioned Russian oil. This followed a wave of sanctions targeting more than 30 vessels in November which also saw Russian insurers VSK and Alfastrakhovanie sanctioned.

Since Russia’s invasion of Ukraine and the imposition of sweeping sanctions by the West on Russia’s economy, such as the EU’s oil price cap, the Kremlin has relied on the illicit trade of Russian oil to fund its war economy.

The European Commission introduced a new delegated directive in April requiring all vessels passing through EU waters, including those which do not enter one of the bloc's ports, to provide insurance information.

The amendment to the Vessel Monitoring Directive (2022/59/EC) adds to EU attempts to crack down on uninsured vessels, which has included a number of sanctions against the global shadow fleet. The EU has also submitted a proposal to the International Maritime Organization seeking minor amendments to several Mandatory Ship Reporting Systems in and around European coastal states.