The sanctions package aims to limit Russia's war efforts
The EU has approved its 17th package of sanctions against Russia, focusing on the shadow fleet—targeting tankers operating outside regulatory oversight, often used to transport Russian oil at prices exceeding the established cap.
The aim is to diminish Russia's ability to fund its war economy by targeting tankers operating under unclear ownership or registration. Although full details are still pending, the measures are expected to restrict access to ports, insurance, and services for these vessels.
The compliant tanker market could benefit
The sanctions may decrease the available tonnage, particularly in the Aframax and Suezmax segments, which are heavily involved in transporting Russian oil. This could bolster freight rates for compliant vessels and highlight the disparity between sanctioned and non-sanctioned tonnage.
The global impact hinges on the strictness of the sanctions' enforcement, yet this measure further tightens the supply of the global fleet.
Sources: AFP and Reuters