In the final days of the Biden administration, US officials announced a significant sanctions package targeting Russia’s oil production and the dark fleet. The Office of Foreign Assets Control (OFAC) sanctioned 183 ships, including 155 tankers, along with Russian energy giants Gazprom Neft and Surgutneftegas, their affiliates, and executives. The sanctions also extended to companies such as Sovcomflot, dark fleet operators, and Russian marine insurers like Ingosstrakh and Alfastrakhovanie. Notably, China’s Wison, involved in the Arctic LNG 2 project, is also on the list.
These tankers represent 45% of Russia’s crude exports and 7% of refined product exports, according to broker Braemar. Of the sanctioned tankers, 54 are currently carrying loads, mostly from Russia or Malaysia. Braemar indicates that these ships will need to be replaced with compliant vessels at higher rates.
Further sanctions from the European Union and UK are expected, with over a third of the dark fleet now affected. In related news, German authorities rescued the 19-year-old Eventin tanker in the Baltic after it broke down with 100,000 tons of Russian oil. It was towed to Sassnitz, Germany, on Sunday.
German Foreign Minister Annalena Baerbock condemned Russia’s use of aging tankers, labeling them a security threat. “By ruthlessly deploying a fleet of rusty tankers, [Russian president Vladimir] Putin is not only circumventing the sanctions but is also willingly accepting that tourism on the Baltic Sea will come to a standstill” she stated.
