The United Kingdom has announced a fresh set of sanctions on July 21 targeting Russia’s oil trade to weaken the country’s ability to fund its war in Ukraine.

The sanctions include restrictions on 135 oil tankers and two Russian-linked companies involved in the transportation and trading of Russian oil.

The tankers are part of Russia’s so-called “shadow fleet,” which has been responsible for carrying around $24 billion worth of oil cargo since the start of 2024. These ships are considered vital to Russia’s energy and oil sector, which provides a large part of the funding for its military activities.

Additionally, two companies were also sanctioned. The first, Intershipping Services LLC, was described as playing a major role in registering shadow fleet vessels under the Gabonese flag. This allowed the ships to transport up to $10 billion worth of goods for the Russian state each year.

The second company, Litasco Middle East DMCC, a Dubai-based oil trading firm affiliated with Russian oil major Lukoil, was targeted for continuing to move large volumes of Russian oil.

The government added that these 137 sanctions, including 135 tankers and two firms, strike directly at the core of Russia’s energy sector and aim to stop Putin’s access to critical oil revenues.

The sanctions come after the UK and EU decided to lower the crude oil price cap from $60 to $47.60 per barrel.

Government figures show that since 2022, Western sanctions have led to a yearly fall in Russia’s oil and gas revenues. The losses now add up to over a third of the total revenue the country previously earned from oil and gas.

The UK said the impact of these losses, combined with the ongoing cost of war, is causing the Russian economy to slow down. According to the government, Russia’s wealth fund is shrinking, inflation is rising, and spending on defence and security is increasing rapidly.

However, Russia has often claimed that Western sanctions are illegal and destabilise the global energy market.

Reference: UK gov

Source: www.marineinsight.com