The European Union (EU) has unveiled its 17th sanctions package against Russia -the largest as of yet- blacklisting 189 additional Russian-linked tankers and bringing the total number of sanctioned vessels to 342.
The Council adopted on 21 May the 17th package targeting Putin’s shadow fleet, doubling the number of vessels included in the list of those subject to a port access ban and ban on provision of a broad range of services. 189 vessels originating from third countries were targeted, bringing the total of designated vessels to 342.
Those vessels are part of Russia’s ‘shadow fleet’, and responsible for transporting Russian oil while practicing irregular and high-risk shipping practices, or supporting Russia’s energy sector. Restrictive measures on the shadow fleet are intended to dismantle its operational capacity, thereby reducing the oil revenues that support Russia’s war economy.
Individual sanctions on the shadow fleet ecosystem
In addition, the EU imposes individual sanctions (assets freeze and prohibition to make funds available) targeting the shadow fleet ecosystem, namely on actors enabling the operation of the shadow fleet. These measures cover shipping companies responsible for the transportation of crude oil and oil products by the sea and engaging in dangerous practices at sea while transporting Russian oil, including entities from the United Arab Emirates, Türkiye and Hong Kong. The list also includes one important insurer of the Russian oil shipping industry.
Economic impact of sanctions and oil price cap
Since the EU introduced the oil price cap and sanctions on the shadow fleet, relevant Russian revenues have decreased by €38 billion. Russian revenues in March 2025 were 13.7% lower than those in March 2023 and 20.3% lower than those of March 2022.
Analysis reveals major gaps in enforcement
However, analysis from Pole Star Global shows that the EU’s package still leaves more than half of the known shadow fleet untouched. This is despite clear links to sanctions evasion, breaches of the G7 oil price cap, and also its related insurance/compliance ramifications. Pole Star has identified hundreds of additional vessels and companies operating in the same manner as those just sanctioned.
David Tannenbaum, Partner in Sanctions & Maritime Intelligence at Pole Star Global, offered an analysis of recent developments in EU sanctions targeting Russia’s shadow fleet. He stated that these sanctions marked a significant escalation by the European Union, as they aimed not only at the vessels but also at the companies responsible for keeping the fleet insured, chartered, and operational. However, he observed that despite the scope of these actions, a substantial portion of Russia’s shadow fleet remains unsanctioned.
Gaps in targeting key fleet operators
Tannenbaum noted that while the EU had designated Cape Gemi Isletmeciligi AS (known as Cape Gemi), which acts as a front company for Beks Denizcilik ve Ticaret (Beks), as well as Prominent Shipmanagement, only 21 out of the 41 tankers operated by these two fleets had been sanctioned. This was despite the fact that all of the vessels were reportedly engaged in the same type of activity. He also mentioned that only one of Beks’ front companies had been named in the sanctions, even though Beks continued to operate two additional front companies, all of which were registered at the same address.
According to DBI, 266 tankers were operated by eight major fleets suspected of evading the price cap or engaging in other shadow fleet activities.
Nevertheless, even with the implementation of the EU’s 17th sanctions package against Russia, only 89 of those tankers had been designated. He pointed out that if the analysis excluded one fleet that primarily transported Iranian crude, the figure would only rise to 43%.
Use of offshore shell structures to obscure ownership
Tannenbaum also explained that a significant number of vessels targeted by the EU in the latest round of sanctions matched a previously identified pattern: they were managed through special purpose vehicles (SPVs) incorporated in the Seychelles on behalf of Azerbaijani or Moldovan entities.
As we like to say during training, you can’t say Seychelles without saying ‘shell’
… Tannenbaum remarked.
Insurance sector targeted in latest sanctions
Additionally, the EU had sanctioned VSK Insurance Joint Stock Company (VSK). Tannenbaum commented that this move signaled the EU’s willingness, similar to the UK’s, to target high-risk Protection and Indemnity (P&I) insurance providers. Although VSK was already under UK sanctions, its inclusion in EU sanctions aligned both jurisdictions’ enforcement efforts.
He noted that VSK was reinsured by the Russian National Reinsurance Company (RNRC), which had already been sanctioned by all Coalition members. He highlighted that this introduced further sanctions risk for those dealing with shadow fleet operators insured by VSK or other Russian P&I clubs.
According to DBI, 366 vessels were either insured by or suspected to be insured by VSK, and the company had long warned the industry about the dangers posed by sanctioned or questionable P&I clubs.
In fact, we’ve identified nearly 1,500 vessels globally that are insured by high-risk P&I providers, including other Russian insurance companies
… Tannenbaum concludes.
Also during this week, the UK Government has announced a broad set of new sanctions targeting Russia’s military machine, energy exports and information war, as well as financial institutions. The sanctions hit 100 new targets, including suppliers of Russian weapons like Iskander missiles, entities involved in Kremlin-backed disinformation efforts, and financial institutions that assist Russia in evading existing sanctions. Additionally, 18 vessels believed to be part of Russia’s “shadow fleet” for crude oil exports were sanctioned, along with individuals linked to these operations.
