Britain imposes new sanctions on Russia's «shadow fleet»: what is known

In brief.

The United Kingdom has announced a new package of sanctions against Russia, targeting the «shadow fleet» of tankers transporting Russian oil in circumvention of restrictions, as well as companies and individuals supplying arms components. The package was presented by Foreign Secretary Yvette Cooper during her visit to Kyiv.

Who was affected by the sanctions

• 70 additional vessels «shadow fleet» involved in transporting Russian oil. London says it is focusing on disrupting schemes to circumvent the price ceiling and insurance/port services.
• 30 companies and individuals from various countries related to the supply of electronics, chemicals, explosives and other components for the Russian military-industrial complex to Russia. Among them are structures in China and Turkey.

Why is this done

London says the new steps should to weaken Russia's energy export revenues and to complicate the production of weapons, with which Russia is waging war against Ukraine. The sanctions were a response to the escalation of Russian missile and drone strikes and incidents of violations of allied airspace.

Context: Britain's previous steps

• In July, London already added the following to the list 135 tankers of the «shadow fleet» and a number of intermediaries; the threshold for the «price ceiling» on Russian oil was also lowered. The new package continues this line of pressure.
• The British government emphasises that Targetedly strengthens control over the circumvention of sanctions in shipping and insurance to cut off informal oil supply channels from Russia.

What it means for Ukraine and the market

• For Ukraine: limiting Russia's revenues and disrupting the supply chain of weapons components should reduce the intensity of attacks and the potential of the Russian military machine.
• For the oil market: Sanctions against the shadow fleet complicate logistics, insurance and port services for Russian cargo, increasing risks and costs for intermediaries.

What's next

Britain announces further concerted action with partners to strengthening enforcement restrictions and closing loopholes in maritime transport. London calls on other capitals to synchronise sanctions lists and control over shadow carriers.

Sources: official statement of the UK government, Reuters, The Guardian.