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As the Russian war effort directed against Ukraine continues,
the latest round of sanctions forces shippers, cargo operators,
corporates, banks and insurers to reevaluate their compliance
programs to align with global regulation.
To date, the European Union has imposed seven packages of
sanctions against Russia and Belarus, including targeted
restrictive measures, economic sanctions and diplomatic actions.
Regulators across North America, parts of Asia and the United
Kingdom have implemented similar sanctions, all in an attempt to
hinder Russia's war effort.
The gradual rollout of stringent sanctions targeted at Russia
has led to an increase in illicit trade behaviours, including dark
shipping activity, vessel flag falsification and illicit goods'
Our August update white paper will provide insight on the most
recent coverage, including:
- Vessel activity in high-risk areas and illicit shipping
- Suspected theft of Ukrainian grain by Russian and Syrian bulk
- Russian oil movements
- Russian supply chain activity and trends
- Dual-use goods and commodities of concern.
- As of 25 July there are 414 vessels in the Crimea Joint
War Committee (JWC) high-risk zone, an increase from the 373
vessels seen on 11 April
- Of the 414 vessels, 109 vessels have been 'dark' for 7
days or more
- From March to June there has been an increase of over
2,000 vessels going dark globally, with the associated
average dark time decreasing. During the same time period, there
was an approximately 25% increase in vessels engaging in a
potential port call whilst dark
- Multiple Russian and Syrian bulkers have been dark in
areas close to Kerch and Sevastopol in Crimea, after being
identified by the U.S. and Ukrainian governments as vessels
illicitly carrying stolen grain to Turkey, Syria and parts
- As of 25 July, there are 100 tankers that have loaded
crude oil from Russian ports with 77.5M barrels of oil on the
water. This is an increase from the previously reported 94
vessels loaded with 75.4M barrels of oil on 10 May
- Although India and China remain key importers of Russian oil,
the remaining countries making up the top five importers are Italy,
Turkey and Netherlands
- In the last 3 months, Italy has been the third largest
importer of Russian oil behind China and India, receiving
on average 700,000 barrels a day
- As of 25 July, 22 bulker vessels registered to Greece are in
transit from Russia to China, India, Italy, Turkey and
Netherlands. In the last 5 months there has been a 150%
increase in the number of Greek, Maltese and Cypriot
vessel operators carrying Russian oil
- Customs data for trade with Russia in May 2022, shows that
China remains a key trading partner. There has been an increase in
the value of goods traded month on month for the previous two
quarters. Mineral Fuels and oils (HS Chapter 27) accounted
for over 77% of total value of traded goods in May 2022.
There were large notable increases in the month-to-month changes in
value of goods being exported from Russia to Switzerland, Ivory
Coast, Panama, South Africa and Argentina
- The U.S. Bureau of Industry and Security (BIS) and Financial
Crime Enforcement Network (FinCEN) released a joint advisory on 28
June, reiterating the need for vigilance in regard
to the shipment of certain 'commodities of concern'. Many of the
commodities listed in the BIS and FinCEN document are being
exported directly to Russia from countries such as China, India,
Turkey, Vietnam, South Korea and Japan
Click here to download the
first paper published in May 2022.
For more information visit Trade Compliance Secure.
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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.