Restrictions causing dozens of oil tankers futile
Date
7/15/2024 7:51:44 AM
(MENAFN) Recent reports indicate that numerous oil tankers, previously engaged in transporting Russian crude, are currently stranded and inactive off the coasts of Russia, China, and Turkey, as a direct result of Western sanctions. According to tracking data analyzed by Bloomberg, around 53 vessels find themselves unable to operate due to penalties imposed by Western nations.
The sanctions specifically target several of these tankers for allegedly breaching the G7 price cap on Russian oil exports, while others have been linked to the Russian state-owned tanker company Sovcomflot. Additionally, some vessels have faced sanctions over purported environmental violations. In February, the United States intensified its focus on Sovcomflot and more than a dozen associated ships, further constraining the operational capacity of these vessels.
Bloomberg's findings reveal that almost all oil carriers designated under United States, United Kingdom, and European Union sanctions since October have been rendered incapable of transporting any cargoes. Notably, only three vessels managed to load cargo before turning off their transponders in an attempt to conceal their subsequent activities.
The impact of these sanctions is evident in the declining freight rates, which reflect the disruptions in vessel movement. However, the penalties have not significantly increased Russia's costs for individual cargoes. The sanctions aim to undermine the Russian economy while ensuring that Russian crude continues to flow to global markets, thereby avoiding potential spikes in oil prices. These measures were introduced in December 2022 and were followed by additional restrictions on Russian petroleum product exports in February 2023.
The situation highlights the ongoing challenges faced by the shipping industry in navigating the complex landscape of international sanctions while revealing the broader implications for global oil markets. As these sanctions continue to evolve, the fate of the idle tankers remains uncertain, underscoring the geopolitical tensions that persist in the region.
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