EU sanctions nine shipping firms, businessmen in Russian shadow fleet crackdown

The EU has sanctioned nine companies and individuals involved in shadow tanker fleet operations, targeting operations connected to Russian oil trade as the bloc seeks to further restrict Moscow's oil revenue streams.

In its latest enforcement, the EU sanctioned UAE-based Nova Shipmanagement, Citrine Marine, Vietnam-based Hung Phat Maritime Trading, and Russia-based SeverTransBunker.

Five individuals were also sanctioned, including Canadian-Pakistani businessman Murtaza Ali Lakhani, who is accused of enabling Russian oil exports.

"Through his companies, he enables shipments and export of Russian oil, notably from the Russian state-owned oil company Rosneft," the European Council said.

This list also includes Anar Madatli and Talat Safarov, both of whom held senior positions at 2Rivers Group, the European Council said in its official journal. According to the Council, 2Rivers Group is an UAE-based oil-trading group, previously known as Coral Energy.

Brussels, often in coordination with the UK and occasionally with the US, has been blacklisting dozens of tankers and their associated companies in recent quarters to disrupt Russia's oil export operations.

"The listed individuals are businessmen linked -- directly or indirectly -- to major Russian state-owned oil companies Rosneft and Lukoil," the Council said in a statement. "They control vessels transporting crude oil or petroleum products, originating in Russia or being exported from Russia, concealing the actual origin of the oil, while practicing irregular and high-risk shipping practices."

Targets

Nova Shipmanagement and Hung Phat did not respond to emails seeking comments. SeverTransBunker and Citrine Marine could not be reached for comment.

2Rivers has said that it conducts its business in full compliance with international sanctions, following earlier enforcement actions by the EU and UK.

The EU sanctions have come as Ukrainian officials are scheduled to meet their US and European counterparts in Berlin over the coming days to discuss a potential peace agreement between Ukraine and Russia.

On Dec. 13, Ukrainian President Volodymyr Zelensky signed a decree implementing sanctions against 656 ships that the country said were part of Russia's shadow fleet.

"The sanctioned vessels sailed under the flags of more than 50 countries, most frequently those of the Gambia, Sierra Leone, Panama, and Cameroon," the Presidential Office of Ukraine said on its website. "We will provide all relevant information to these states and will work with them to halt the issuance of licenses."

Russia, Iran, and Venezuela, faced with tightening Western sanctions, have been increasingly turned to an emerging class of shipping companies and businessmen to maintain their oil logistics.

The number of tankers transporting crude and refined products produced by more than one of the sanctioned countries reached 193 as of late August, up more than fivefold from 35 at the end of last year, according to S&P Global Commodities at Sea and Maritime Intelligence Risk Suite data.