Plans are underway to restrict Russian exports, but implementation could prove challenging
In response to the war in Ukraine, the EU and G7 implemented a $60-per-barrel price cap on Russian oil to curb Russia’s export revenues.
The EU also aims to end all Russian oil imports by 2027, requiring member states to transition to alternative suppliers. While some have proposed lowering the cap further—to around $50 per barrel—any change would require unanimous EU agreement and coordination with the US, making enforcement especially challenging.
An import ban could bolster tonne-mile demand
For shipowners like EMF, evolving trade flows linked to sanctions and the EU’s gradual phase-out of Russian oil could generate more attractive voyage opportunities and boost tonne-mile demand. If implemented, these shifts may tighten vessel supply and support sustained higher freight rates over the long term.
Further measures to restrict Russian exports are in development, but enforcement remains a significant challenge
Sources: Reuters, IntelliNews, TradeWinds