Restrictions causes dozens of oil tankers to go in vain

(MENAFN) According to a report by Bloomberg on Wednesday, dozens of oil tankers previously engaged in transporting Russian crude oil now sit idle and empty along the coasts of Russia, China, and Turkey, as they face repercussions from Western sanctions. Citing tracking data, Bloomberg highlighted that 53 vessels have been affected, with some targeted for exceeding a G7 price ceiling on Russian oil exports, while others were sanctioned for their association with the Russian state tanker enterprise Sovcomflot, or due to alleged environmental concerns.

The sanctions, implemented by the United States and its allies, took aim at Sovcomflot and several affiliated vessels in February, with consequences reverberating across the industry. Since October, nearly all sanctioned oil carriers have been unable to load any cargoes, except for a few instances where three vessels reportedly loaded before turning off their transponders to conceal further activities.

Despite efforts to disrupt vessel movements and impose costs on Russian oil exports, Bloomberg noted that freight rates have seen a decline, indicating limited success in visibly increasing Russia's costs for individual oil shipments. The Western sanctions included a price cap and embargo on Russian seaborne oil exports, designed to impact Russia's economy while ensuring continued global oil market stability without triggering significant price hikes. These measures were initially introduced in December 2022, followed by additional restrictions on Russian petroleum product exports in February 2023.

The situation underscores the ongoing economic pressures faced by Russia amid international efforts to curtail its energy sector activities, impacting global oil logistics and trade dynamics significantly.

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