EU to Permit Sale of Russian Oil Seized from”Shadow Fleet” Tankers

The European Union has included a provision in its new 21st package of sanctions against Russia that allows member states to sell Russian oil and other cargo seized from vessels belonging to Russia’s so-called “shadow fleet.”

According to Euractiv, once the sanctions package is formally approved, EU member states will be authorized to confiscate cargo carried by ships transporting Russian oil in violation of EU sanctions and the G7 price cap. The authorities may then sell the seized oil and other cargo.

During a maritime enforcement operation, authorities detain the vessel and then sell the seized oil or other cargo.

Such seizures have become increasingly common, but until now authorities had not established a clear procedure for dealing with confiscated cargo.

The new rules address this issue by allowing authorities to sell seized cargoes, which often have significant commercial value.

The measure applies not only to oil. During inspections, authorities also confiscate other Russian goods, including grain, which may likewise be sold.

The European Union is stepping up pressure on Russian energy exports in an effort to reduce the Kremlin’s revenues used to finance its war against Ukraine.

According to Euractiv, several European countries have detained vessels suspected of circumventing sanctions in recent months. In March, Belgium took control of a tanker in the North Sea capable of carrying approximately 330,000 barrels of oil.

At current market prices, the cargo is estimated to be worth around $26 million.

In June, France detained another tanker after it had loaded cargo in Murmansk, Russia. The vessel has a capacity of approximately 600,000 barrels, with the oil cargo estimated to be worth about $48 million.

EU High Representative for Foreign Affairs Kaja Kallas also announced that on July 20, European maritime authorities inspected the MV South Star in the Mediterranean Sea to verify its flag, as the vessel is suspected of being linked to Russia’s “shadow fleet.”