MEPs approve sanctions against Russia's 'shadow fleet'

MEPs have voted for targeted sanctions against Russia's so-called shadow fleet of oil tankers which has allowed Moscow to export large volumes of crude oil and petroleum products despite EU, G7 and international sanctions.

There have been growing concerns that the tankers that Russia is using are old and uninsured, and could lead to ecological disasters, including in EU waters.

Russia began using the shadow fleet as a way to circumvent a price cap on Russian oil which was agreed by the international community at the end of 2022 in response to Russia's invasion of Ukraine.

The $60 (€55) a barrel price cap was to ensure that Russia was starved of income to wage its war against Ukraine in a way that would not also produce a spike in the price of oil.

Under the scheme, Russia would only be able to charter and insure tankers if they were in compliance with the price cap.

To avoid this, Russia has been chartering old and uninsured vessels to export its oil for a higher price.

This has led to concerns that some 600 such vessels were at risk of oil spills, the cost of which would not be covered by insurance.

At the same time, the use of the shadow fleet has allowed Russia to earn billions of dollars in oil revenue that would have been cut off by the price cap.

In a resolution carried on a show of hands, the European Parliament called for more targeted measures against such vessels in the next EU sanctions packages, including individual ships, their owners, operators, managers, accounts, banks and insurance companies.

The resolution was co-sponsored by the centre-left Socialists and Democrats group, the centre-right European People’s Party, the Greens, the liberal Renew Group and the right-wing European Conservatives and Reformists.

It also demanded the sanctioning of vessels sailing through EU waters without insurance and urged the EU to enhance its surveillance capabilities, especially drone and satellite monitoring, and to conduct targeted inspections at sea.

MEPs demanded that member states designate ports capable of handling sanctioned vessels carrying crude oil and Liquified Natural Gas, and to seize illegal cargo without compensation.

The resolution, which is non-binding, also called on G7 countries to enforce the price cap and to crack down on loopholes which have allowed Russia to repackage and sell oil at market rates.

The text also suggested member states should reassess bilateral cooperation with third countries helping Russia to circumvent EU sanctions.

Russia has steadily increased the amount of oil exports via its shadow fleet, from 2.4 million metric tonnes in January 2022 to 10.8 million metric tonnes in July of this year.

The Centre for Research and Clean Air said nearly 400 vessels exported Russian crude oil and oil products in October, of which 222 were "shadow" tankers - almost one third of which were at least 20 years old.

Sinn Féin MEPs Lynn Boylan and Kathleen Funchion voted in favour of a far-right Patriots group amendment calling on the European Commission to carry out an audit on the impact of sanctions on Russia in relation to energy and food prices.

Both MEPs, and Independent MEP Luke Ming Flanagan, supported a second amendment calling on the EU to launch an "ambitious" diplomatic effort to call for a ceasefire and end the war in Ukraine.

Both amendments were defeated.