The UK Government Imposes New Sanctions on Russia’s Shadow Fleet

The UK government has unveiled a slate of 137 new sanctions aimed at disrupting Russia’s shadow fleet. These measures, announced by foreign secretary David Lammy, specifically target 135 oil tankers and entities facilitating their operations.

Among the entities facing sanctions are Intershipping Services, a UAE-based company responsible for the flag registrations of vessels in Gabon and Comoros, and Litasco Middle East, a Dubai-based affiliate of Russian oil giant Lukoil.

“Every attack we launch against Russia’s critical oil industry is another step towards securing a lasting peace in Ukraine,” said Lammy.

The timing of these sanctions coincided with the UK’s adoption of the European Union’s new crude oil price cap, which was lowered from $60 to $47.60 per barrel. This move intensifies pressure on Russian exporters and middlemen who have been attempting to evade sanctions by offering deep discounts to buyers in Asia and the Middle East.

The EU’s decision, part of its 18th sanctions package unveiled last week, aligns with previous G7 policies but introduces new blacklisting powers and enhanced port monitoring to improve enforcement. However, analysts caution that without US cooperation, full enforcement may prove challenging due to the dollar’s dominance in oil trade settlements.

According to UK government estimates, Russia’s oil and gas revenues have declined by over a third since 2022 as a result of these sanctions.