EU tightens rules on oil tanker sales in latest sanctions against Russia

The European Union (EU) has adopted a 12th package of economic sanctions against Russia aimed at restricting its capability to finance its war in Ukraine.

PHOTO: Flags of Russia and Ukraine. Getty Images

The new sanctions package includes stricter compliance rules that support the G7 oil price cap set on Russian crude oil and other oil products and a “clamp down on circumvention,” the Council of the European Union said.

The Council has now ruled that sellers need to notify authorities of any sales of Russian oil tankers to any third country, particularly for second-hand carriers that are often used to evade the price cap and import ban on Russian crude oil and other petroleum products.

Shipowners and maritime traders have carried out illicit practices such as ship-to-ship transfers and AIS manipulation to shroud cargoes carrying Russian oil and oil products, the Council claims.

“A strengthened information sharing mechanism will allow better identification of vessels and entities carrying out deceptive practices,” the Council said.

The price caps on Russian oil are a strategic move by Washington and its allies (G7 group of countries) to curtail Russia's export revenue, thereby limiting the country’s financial resources available for sustaining the ongoing war in Ukraine.

“These measures deliver a further blow to Putin's ability to wage war by targeting high-value sectors of the Russian economy and making it more difficult to circumvent EU sanctions,” the Council said.

Earlier this year, two price caps were set on refined Russian oil products. The first one was a price cap of $100/bbl on products such as diesel and gasoil that trade at premiums to crude. The second was a cap of $45/bbl on products like fuel oil that are traded at discounts to crude.

In 2022, it set a first price cap of $60/bbl on crude oil originating from Russia.

By Aparupa Mazumder 

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