The UK has announced 50 new sanctions to undermine Russia’s war capabilities, coordinated with G7 partners, to support Ukraine. These measures target ships in Russia’s “shadow fleet,” key financial institutions, and suppliers aiding Russia’s military production.
This announcement coincides with the Prime Minister’s attendance at the G7 Leaders Summit in Italy, signaling strong UK support for Ukraine.. A key focus is on vessels in Russia’s shadow fleet, which facilitate oil trade despite existing sanctions.
Additionally, the UK has committed £242 million in bilateral assistance to Ukraine, addressing humanitarian, energy, and stabilization needs. The UK is also collaborating to redirect profits from immobilized Russian sovereign assets to aid Ukraine.
What is the dark/shadow fleet?
The “dark fleet” or “shadow fleet” comprises primarily older tankers, many of which have not undergone recent inspections and lack proper maintenance. Ownership of these vessels is often unclear, and they frequently operate without adequate insurance coverage, seeking to evade sanctions and mitigate high insurance costs. This increases the risk of oil spill or collision. This could also result in a participating shipowner evading its liability under the relevant liability and compensation treaties.
Russia’s oil exports, a vital revenue source for its war efforts, face disruption from these sanctions. Suppliers of military-related goods and logistics, including entities from China, Israel, Kyrgyzstan, and Türkiye, as well as ships transporting military goods from North Korea, are also targeted. Financial institutions, such as the Moscow Stock Exchange, are affected, in alignment with similar US actions.
The UK has sanctioned over 2,000 individuals and entities, significantly impacting the Russian economy and reducing bilateral trade by billions.