Russian oil tankers hunt for new flags to evade sanctions
Pravda Ukraine
Part of Russia’s oil tanker fleet has been forced to change the flag under which they fly, as US and UK sanctions exert pressure on Moscow’s shipping network.
Source: Bloomberg
Details: The Barbados Ship Registry announced that by the end of the month, it will request 46 vessels to remove the country’s flag due to UK sanctions, with 14 of these vessels also being subject to US sanctions.
Additionally, earlier this month, Panama’s ship registry revealed that it had begun delisting 68 vessels under US sanctions.
Although all ships are expected to find new flags, many vessels serving Moscow’s interests have been repeatedly forced to switch to unconventional service providers since 2022. This highlights the disruptive impact of sanctions on Russia’s extensive logistics system, which supports its oil flows and military operations. These latest actions follow the most extensive sanctions imposed on Russian exports earlier this month.
Flying under the Barbados flag had been a significant achievement for Russian shipping, as Barbados is one of the most reputable countries for ship registration globally.
Background:
- Russian oil companies have faced new challenges in the Indian market, which had significantly increased purchases of Russian barrels after the start of the full-scale war, becoming Russia’s second-largest oil importer after China.
- Meanwhile, transportation costs for Russia’s ESPO crude oil to China have skyrocketed, reaching nearly a fivefold increase compared to pre-sanctions levels following the latest US sanctions on Russia.
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