G7 nations are working to curb Russia’s use of a so-called shadow fleet of tankers to move oil, aiming to tighten the web of sanctions that have already begun to bite. Bloomberg reports, quoting Olga Dimitrescu from the British Sanctions Office, that the collective goal is to push Russia back toward relying on Western-provided shipping, insurance, and other services that adhere to sanctions. [Bloomberg]
The strategy is to force Moscow to abandon the workaround that developed after price caps on oil were set. Russia assembled a vast fleet with help from indirect traders, enabling crude exports to flow despite tighter controls on ships, insurance, and financing from Western companies. The result is a more opaque network that complicates enforcement and raises questions about the true reach of sanctions. [Bloomberg]
Discussions among G7 members and other governments focus on the risks associated with Russia’s shadow fleet and the potential for evasion. The European Union has also moved to restrict the sale of older tankers to unknown buyers, aiming to disrupt renewal of the opaque fleet and hamper its ability to replace aging assets in the global market. [EU Updates]
Dimitrescu noted that the United States intends to tighten sanctions in the second quarter against tankers and the entities involved in violating oil trade restrictions. The aim is to close loopholes and deter additional operators from joining the network that supports Russia’s oil exports. [US Policy]
Earlier, a temporary resumption of sea deliveries from Russia followed a period of disruption, highlighting the fragility of supply chains and the ongoing efforts to maintain economic pressure. The evolving situation underscores how sanctions shape not only official trade routes but also the choices of traders, insurers, and shipowners around the world. [Market Analysis]
In parallel, the United States has already sanctioned several tankers linked to Russian oil, signaling a broader push to reinforce the sanctions regime and curb the circulation of Russian crude through intermediate vessels and third-country carriers. The combined effect aims to limit revenue streams and complicate the logistics that support crude exports, even as the global energy landscape adapts to new constraints. [Policy Notes]