The United Kingdom has announced new sanctions against a Russian insurance company that it claims is helping to operate a “shadow fleet” of tankers, marking a significant uptick in economic penalties. These tankers are a crucial part of Moscow’s plan to get around Western economic sanctions imposed in retaliation for its ongoing conflict in Ukraine. It is alleged that these tankers are being used to transport Russian oil in violation of international sanctions. “New targets include ships in Putin’s shadow fleet, Russian LNG companies, a shipmanager and Ingosstrakh, a top,” wrote Splash247.
The move by the UK was proceeded by the U.S., the Office of Foreign Assets Control, which announced a fresh round of sanctions against Russia targeting chips that are shipped through China. Reuters reported that “among the steps, the U.S. Treasury said it was raising “the risk of secondary sanctions for foreign financial institutions that deal with Russia’s war economy,” effectively threatening them with losing access to the U.S. financial system.”
The shadow fleet, thought to number in the hundreds, has played a crucial role in enabling the transportation of Russian crude oil to markets in Asia and the Middle East, evading Western sanctions that aim to sever a substantial source of income for the Kremlin. These tankers work in extremely secretive ways; to hide their activities, they frequently disable tracking devices and use intricate ownership structures.
As the geopolitical standoff continues, the focus remains on the enforcement of sanctions and the ability of international bodies to adapt to evolving tactics used by sanctioned entities. The effectiveness of these measures will likely play a crucial role in shaping the next phase of the conflict and the global economic landscape.
