UK lists 70 new shadow tankers in new sanctions clampdown

The UK issued a raft of new Russian sanctions targeting dozens of shadow tankers, chemical producers and drone manufacturers, it said Sept. 12.

New measures designed to clamp down on Russian revenues listed 100 new sanctions targets, including 70 tankers engaged in the country's oil trade.

A statement from the UK government said the tanker clampdown took its number of sanctioned vessels higher than those of any other country, including other major enforcement leaders like the US and EU.

The UK has recently redoubled its sanctions efforts as it has fought to boost compliance with its price cap policy and hit Russian energy exports, expected to account for roughly a third of government revenues..

A network of shadow tankers operating outside the mainstream shipping sector has so far proved effective in helping Russia to circumvent Western sanctions, which from Dec 2022 banned shipowners from transporting oil valued over $60/b.

However, the UK has pushed to tighten compliance with the price cap threshold, which on Sept. 2 dropped to $47.60/b under a new dynamic mechanism.

After first announcing the adjusted price cap in July, the UK immediately followed up by listing 135 oil tankers and a Lukoil-linked trading house based in the UAE.

According to figures from S&P Global Commodities at Sea and Maritime Risk Intelligence Suite data, the global shadow fleet now stands at 978 tankers of over 27,000 deadweight tons, representing almost 20% of the global oil tanker network.

The UK called tougher measures a necessary response to an escalating security threat from Russia, which on Sept. 10 was reported to have shot drones into Polish airspace for the first time in the conflict.

"The UK will not stand idly by as Putin continues his barbaric invasion of Ukraine. His complete disregard for sovereignty has been shown this week when he recklessly sent drones into NATO airspace," said a statement from Foreign Secretary Yvette Cooper.

CAS data shows the 70 tankers sanctioned have transported 79.4 million barrels of crude and refined products from Russian ports since the beginning of 2024, as well as small amounts of oil from Iran and Venezuela, another two countries under heavy Western sanctions.

Russia, Iran and Venezuela are increasingly sharing the same pool of vessels to maintain their overseas oil sales, Platts recently reported.

Other targets

New UK regulations also designated 30 entities and individuals deemed to be supporting Russia's war effort, including equipment, chemicals manufacturers and electronics suppliers helping to build Russian drones.

In the last fortnight, Russia has launched over 800 missiles and drones at Ukraine, the government statement said, reporting 10 times the volume of attacks in July relative to 2024 levels.

As peace efforts have stalled, the EU has also pledged to ramp up its Russian restrictions under its 19th sanctions package. New measures are expected to strongly target the shadow fleet, but could also include tougher measures against third countries and a commitment to a faster phaseout of Russian energy, Brussels lawmakers have said.