EU and UK widen Russia sanctions with new shadow fleet and LNG carrier targets

The latest measures “strike at the heart of Russia’s military-industrial complex, its shadow fleet, and the networks that fuel Moscow’s hybrid attacks against Europe,” EU foreign policy chief Kaja Kallas said on 15 June.

The EU Council’s latest sanctions package includes the designation of two individuals and 24 entities, including companies based in Russia, Liberia, Turkey, the United Arab Emirates, Azerbaijan and Hong Kong, for their alleged role in supporting Russia’s “shadow fleet ecosystem”.

Among the newly designated entities is Lukoil-Western Siberia, which the EU describes as the commercial operator of three vessels lacking “adequate liability insurance” and engaging in “ship-to-ship transfers as well as manipulation of Automatic Identification Systems while transporting crude oil or petroleum products exported from Russia.”

Gazpromneft Shipping has also been listed as the technical manager of another three vessels involved in similar activities.

Another familiar name on the designation list is Coral Energy, later renamed 2Rivers Group, with the EU targeting Tahir Garayev, identified as its founder.

“Through a network of companies, he enables the shipment and export of Russian oil, in particular from Rosneft, by concealing the actual origin of the oil,” the EU Council said.

The wider EU package includes sanctions against 34 individuals and 47 entities.

UK targets LNG carriers

Meanwhile, the UK has announced a major sanctions package targeting more than 20 tankers and four additional LNG carriers.

The targeted LNG carriers are Orion, Luch, Merkuriy and Kosmos. Riviera reported last month that Russian buyers had reportedly acquired these vessels, built between 2005 and 2006, as they were reflagged to the Russian registry.

“The UK is the first G7 country to sanction several LNG vessels recently acquired by Russia at great expense to service Russia’s sanctioned Arctic LNG 2 project, responsible for exporting millions of tonnes of LNG, in an attempt to source dirty revenue for the Kremlin,” the sanctions announcement said.

The UK has also targeted individuals and entities suspected of facilitating the sale of tankers to Russia’s shadow fleet, warning that they “will be exposed and face action.”

Notably, the EU has proposed restrictions on the sale of LNG carriers to Russia, mirroring measures previously introduced for oil tankers. 

The UK has now sanctioned more than 600 vessels linked to Russia’s shadow fleet and Russian LNG trade.

“These sanctions target the vessels, the money and the actors propping up Russia’s war economy, and in turn threatening European security,” Prime Minister Keir Starmer said.