Members of the European Parliament (MEPs) have taken a decisive step to impose targeted sanctions on what’s often referred to as Russia’s shadow fleet of oil tankers. This fleet has enabled Moscow to continue exporting significant volumes of crude oil and petroleum products, effectively sidestepping the sanctions imposed by the EU, G7, and various international bodies.
A growing chorus of concern has emerged regarding these aging, uninsured tankers, with fears that they could trigger ecological disasters, particularly within EU waters. As the world knows, Russia’s shadow fleet was conjured up to escape the strict price caps on Russian oil, a measure agreed upon globally at the close of 2022, spurred by Russia’s aggressive actions in Ukraine.
The price cap, set at $60 (€55) per barrel, aimed to impede Russia’s financial flow for its military endeavors while also preventing a surge in oil prices for consumers. This was a delicate balancing act that many hoped would deter further hostilities in Ukraine.
By utilizing this fleet of old and uninsured vessels, Russia has managed to sell its oil at higher prices, cleverly maneuvering around the original sanctions. This development has raised alarms as estimates suggest that approximately 600 of these ships could potentially incur oil spills, a disaster whose financial repercussions would likely fall on the environment rather than on any insurance policies.
Moreover, the resolution passed by the European Parliament calls for punitive actions against those ships navigating through EU waters without proper insurance. MEPs expressed that these measures need to be part of the forthcoming EU sanctions packages, targeting not just the ships but also their owners, operators, and the banks and insurers involved in these transactions. The co-sponsors of this resolution represent a broad political spectrum, including the centre-left Socialists and Democrats, the centre-right European People’s Party, the Greens, the liberal Renew Group, and the right-wing European Conservatives and Reformists.
In line with these objectives, the resolution emphasizes the necessity of increasing surveillance, particularly through drone and satellite monitoring, along with conducting focused inspections at sea. Furthermore, MEPs insisted that member states identify ports capable of handling sanctioned vessels transporting crude oil and liquefied natural gas while also pledging to seize any illegal cargo without offering compensation to the offenders.
It’s important to note that this resolution is non-binding. However, it does call upon G7 nations to enforce the price cap rigorously and address the loopholes that have permitted Russia to effectively repackage and sell its oil at market prices. Additionally, MEPs suggested that member states reassess their bilateral relationships with any third countries aiding Russia in evading EU sanctions.
Interestingly, Russia has been ramping up its oil exports via this shadow fleet, jumping from 2.4 million metric tons in January 2022 to a staggering 10.8 million metric tons by July of this year. As per data from the Centre for Research and Clean Air, nearly 400 vessels exported Russian crude oil and products in October. Of these, a notable 222 were categorized as shadow tankers, with nearly one-third being over two decades old.
Irish Sinn Féin MEPs Lynn Boylan and Kathleen Funchion, alongside Independent MEP Luke Ming Flanagan, supported a far-right Patriots group’s amendment urging the European Commission to assess the effects of sanctions on Russia, specifically regarding energy and food price implications. Furthermore, these representatives backed another amendment calling for an “ambitious” diplomatic initiative aimed at achieving a ceasefire and bringing an end to the conflict in Ukraine. Sadly, both proposals did not gain the necessary votes.
As the situation develops, the ultimate goal remains clear: to bolster actions against Russia’s economic machinery while ensuring ecological safety, thereby creating a more stable and responsible energy market within Europe.
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
