Dozens of Russian oil tankers have been idle for three to six months. US sanctions against Russian oil have been effective.
On the sanction list, Russia’s Sovcomflot owns 21 of the 40 ships under sanctions, while a UAE company controls the remaining vessels. SCF Primorye is the only one removed from the sanctions list.
Since October last year, dozens of vessels carrying Russian oil have remained under sanctions for violating the price cap. Many of them have been inactive for 3 to 6 months, Bloomberg reported.
US sanctions impact Russia’s oil trade
Previously, observers criticized the sanctions on Russian oil for being “inactive.” The Kremlin could easily circumvent them by creating its own shadow fleet, which was the reason. However, sanctions become effective if they impose restrictions on individual Russian vessels.
After the US Treasury imposed sanctions for violating the price limit on Russian oil, 40 oil tankers have been idle at sea for months. This shows that the US is capable of disrupting Russia’s oil supply chain.
Of the 40 vessels, 21 belong to the Russian state-owned shipping company Sovcomflot. Hennesea Holdings Ltd., based in the United Arab Emirates (UAE), controls the remaining vessels.
The ships that have been subject to US sanctions are only a small part of Russia’s shadow fleet. Shell companies created the fleet to circumvent G7 restrictions on shipping services.
In 2023, Russia’s oil revenues amounted to 7.03 trillion rubles, according to data from the Russian Ministry of Finance.
In December 2022, the G7 countries and the European Union imposed a price cap on Russian oil. Therefore, they set the price ceiling at $60 per barrel. The G7 states’ move aimed at reducing Russia’s capability to finance its war in Ukraine.
Exclusions from a list
Only the SCF Primorye, which was on the US sanctions list, was able to collect its cargo. In April, the vessel’s violations (transporting Russian oil for more than $75 per barrel) led to its removal from the list. However, the vessel continues to anchor off the coast of Texas.
If the SCF Primorye can unload without any problems, Russia will try to use more vessels for the oil trade.
In the Pacific Ocean, eight Sovcomflot tankers are still near Russian ports. Some of them have been there for more than five months. In addition, there is another cluster of idle Sovcomflot tankers in the Black Sea.
In the Pacific Ocean, eight Sovcomflot tankers are still near Russian ports. Some of them have been there for more than five months.
In addition, there is another group of idle Sovcomflot tankers in the Black Sea.
