The UK has introduced new measures to crack down on Russia’s shadow fleet, which exports oil and funds Moscow’s war effort, with the Foreign Office announcing sanctions on 10 ships that it believes are central to the operation.
Russia operates a large fleet of aging, often unsafe tankers that transport gas and oil products globally. In 2023, oil exports accounted for about 25% of Russia’s budget, making them a critical source of funding for Putin’s war in Ukraine.
On his way to Kyiv for talks with Ukrainian leaders, UK Foreign Secretary David Lammy said, “Putin’s war machine is sustained by a dark and illegal economic network, and this government is committed to destabilizing it.”
“These sanctions further erode Russia’s ability to trade oil through its shadow fleet. Alongside our allies, we’re sending a clear message: the international community stands with Ukraine, and we will not tolerate this illicit trade.”
“Russia has spent over $8 billion building this shadow fleet. But with sanctioned tankers unable to load oil, we aim to make this investment a costly mistake for Putin. Our actions will counter Russia’s attempts to evade economic sanctions.”
The targeted vessels, described as “high-volume offenders,” have been operating continuously to move large quantities of Russian oil. These ships are now banned from UK ports and excluded from the UK ship register.
Three of the sanctioned ships—Nikolay Zuyev, NS Asia, and Zaliv Aniva—have collectively transported more than $45 billion worth of Russian oil since the invasion of Ukraine began in February 2022.
This newly developed shadow fleet has become the largest loophole in Western sanctions aimed at preventing Russia from financing its war through oil sales.
To curb this revenue without causing oil prices to surge, the G7 imposed a cap, prohibiting insurance for any ship selling oil above $60 per barrel. The shadow fleet has grown to bypass this cap, though experts say only a small number of ships are key to the operation.
The UK claims that earlier sanctions against individual shadow ships have left many vessels idling outside ports, unable to continue their trade in Russian oil.
With this latest round of sanctions, the number of targeted shadow fleet vessels rises to 25, following the UK’s July “call to action” to stop the trade.
Since February 2022, sanctions have deprived Russia of over $400 billion in assets and revenue, the equivalent of four more years of war funding. The UK has sanctioned more than 2,000 individuals and entities as part of its Russia sanctions regime.
The designated ships will be barred from UK ports, could face movement or entry restrictions, may be detained, and will not be allowed to register on the UK ship register.
