The UK has imposed sanctions on ten vessels it claims are operating as part of Vladimir Putin’s ‘shadow fleet’ in the latest attempt to limit Russia’s revenues as the military conflict with Ukraine continues.
UK Foreign Secretary David Lammy said on Wednesday that “Putin’s war machine is funded by a dark and illicit economic system that this government is committed to destabilising.”
Russia's extensive fleet consists of frequently unseaworthy and ageing tankers that ship Russian gas and oil products worldwide. The country heavily relies on oil exports as the primary funding source for the war in Ukraine, making up approximately 25% of the Russian budget in 2023.
The targeted ships are all "high-volume offenders", vessels operating around the clock to transport as much Russian oil as possible.
These ships will now be prohibited from entering UK ports and denied access to the UK Ship Register.
Lammy added that the new sanctions "further undermine Russia’s ability to trade oil via its shadow fleet. Alongside our partners, we will continue to send a stark message to Russia that the international community stands with Ukraine, and we will not tolerate this illicit fleet.”
According to several UK media reports, the ships Nikolay Zuyev, NS Asia and Zaliv Aniva have collectively transported more than $5bn (Rbs455.68bn) worth of Russian oil since Russia began its invasion of Ukraine in February 2022.
Since February 2022, sanctions have cost Russia more than $400bn in lost assets and revenues, while the UK has imposed sanctions on several individuals and entities.
Lammy said: “Russia has been forced to spend over $8bn amassing this shadow fleet. But with sanctioned tankers loitering and unable to load oil, we are determined to make Putin’s investment an expensive misstep for the Kremlin.”
However, despite a 1.1% revenue drop, Rosneft, the Russian energy company, announced a 45.5% boost in net profit and a 25.1% increase in EBITDA (earnings before interest, taxes, depreciation and amortisation) for the first quarter of 2024 (Q1 2024).
During Q1 2024, the company generated $27bn in revenues and attained an EBITDA of Rbs857bn.
