Sweden: Further anti-Russian sanctions should target oil tanker fleet

Since the start of the conflict between Ukraine and Russia, the European Union and its partners have imposed a series of sanctions on Russia. Further sanctions are in the works, including discussions about banning imports of Russian gas. Sweden’s foreign minister is also calling for sanctions to target the so-called shadow fleet of tankers carrying Russian oil.

A number of sanctions have specifically targeted Russia’s oil and gas sector. Examples include not only the ban on imports of Russian oil into most EU countries, but also the price cap. This determines how much buyers of Russian oil and petroleum products can pay exporters there without becoming subject to sanctions.

The price caps in question are enforced through Western shipping and insurance companies. However, Russia also uses tankers whose operators are not exposed to the threat of sanctions to transport its oil.

"Adopting the 14th package of sanctions is one of the most important things. We will make sure it includes both a ban on imports of Russian liquefied natural gas and measures to curb Russia’s shadow fleet,"Swedish Foreign Minister Tobias Billstrom said, according to Reuters.

Stronger sanctions targeting oil carriers could further complicate Russia’s exports. According to recent information from Reuters sources, Russia has recently been having trouble collecting payments for oil sold. After the sanctions were tightened, some foreign banks began more closely scrutinising transactions they process to ensure they do not expose themselves to the risk of sanctions.