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US sanctions paralyze the movement of Russian oil tankers

May 21, 2024

US sanctions on Russian oil tankers have disrupted Moscow's exports; It paralyzed dozens of ships in the water. This poses a major challenge to the Russian energy supply chain.

Since October 2023, the US Treasury has placed 40 Russian tankers on the sanctions list, most of them due to violating the oil price limit imposed to curb the Kremlin’s revenues. Only one tanker – SCF Primorye – was able to load a shipment after it was placed on the sanctions list, and it is currently heading To Asia.

While sanctions, including oil price caps, have faced criticism for being easily circumvented, the paralysis of the transportation fleet demonstrates the effectiveness of targeted sanctions. 21 out of 40 tankers owned by the Russian company Sovcomflot were disrupted, while the UAE's Hennessy Holdings controls the rest of the tankers.

The grounded tankers form part of a “shadow fleet” built by subsidiaries to circumvent sanctions imposed by the Group of Seven countries on services provided to Russian oil tankers.

Despite the lifting of sanctions on one tanker, the Turkish Yasa Golden Bosphorus, in April; Which allowed it to benefit from global services, while the rest of the carriers remain stuck in different places around the world.

Eight tankers belonging to the Sovcomflot company have been besieged off the Russian ports of Vladivostok and Nakhodka, some of them for 5 months, while another group is stuck in the Black Sea. Many of them had their tracking devices turned off shortly after their arrival.

There are 3 Sovcomflot tankers in the Baltic Sea, two off the port of Ust-Luga and the third off Estonia. There are also 18 stranded tankers belonging to Hennessy Holdings in the Middle East, 10 of which are off China and South Korea and the rest off Port Said since. More than 3 months.