EU targets Russia’s shadow fleet with fresh sanctions

Brussels: The European Union on Monday slapped sanctions on five businessmen linked to Russian state-owned oil companies Lukoil and Rosneft and targeted companies accused of circumventing sanctions on Russian oil by running ships for Moscow’s shadow fleet of aging oil tankers.

Oil revenue is a key part of Russia’s economy, allowing President Vladimir Putin to pour money into the war effort against Ukraine without worsening inflation for everyday people and avoiding a currency collapse.

Member countries, notably France, have vowed to crack down on the sanction-busting shadow fleet which experts estimate numbers over 400 ships. They are also trying to secure deals with flag-carrying countries to make it easier to board the vessels.

EU headquarters said the businessmen “control vessels transporting crude oil or petroleum products, originating in Russia or being exported from Russia, concealing the actual origin of the oil, while practicing irregular and high-risk shipping practices.”

The four shipping companies targeted are based in the United Arab Emirates, Vietnam and Russia.

A statement said they own or manage shadow fleet tankers under sanctions and which transport oil “while practicing irregular and high-risk shipping practices.”

The sanctions, which were agreed at a meeting of the 27-nation bloc’s foreign ministers in Brussels, involve mostly asset freezes and travel bans.

The EU move adds to growing pressure on the shadow fleet.