Tag: Energy Sanctions
Trump’s Sanctions Hit Russia’s Oil Giants: Maria Perrotta Berlin Discusses the Impact
In a new Associated Press (AP) report, the United States and European Union have jointly announced fresh sanctions on Russia’s leading oil producers, Rosneft and Lukoil. The measures aim to cut revenue funding for Moscow’s war in Ukraine and signal the Trump administration’s first major sanctions package on Russian oil since returning to office.
This move underscores Washington’s tougher stance toward the Kremlin’s war economy and its global oil trade network.
Sanctions Are Powerful, But Often Come Too Late
“The sanctions are large and powerful, but they have always come a little too late,” said Maria Perrotta Berlin, Assistant Professor at the Stockholm Institute of Transition Economics (SITE).
Perrotta Berlin explained that Russia’s shadow fleet and complex web of traders have helped it adapt to earlier restrictions. However, she noted that the new measures, which threaten secondary sanctions on Indian and Chinese refiners, could have a more immediate chilling effect on Russian oil exports.
Sanctions Pressure on Putin and Russia’s Oil Strategy
According to the AP article, the sanctions aim to pressure President Vladimir Putin to consider President Donald Trump’s proposal for an “immediate ceasefire.” Analysts caution that while the sanctions won’t cripple Russia’s economy overnight, they could increase long-term costs, reduce oil revenues, and expose vulnerabilities in Moscow’s energy strategy. In parallel, the European Union’s ban on Russian LNG imports and the sanctioning of 117 additional tankers amplify the economic pressure on Russia’s fossil fuel sector.
To read Maria Perrotta Berlin’s full commentary and detailed analysis on how Trump’s sanctions are reshaping Russia’s oil policy, see the full AP article on the Associated Press website.
Further Reading: Sanctions, Energy, and Russia’s War Economy
Energy exports remain the backbone of Russia’s economy and a tool of geopolitical leverage. Sanctions targeting this sector aim to reduce state revenue and limit Moscow’s influence abroad.
- Explore the Sanctions Portal Evidence Base to access the latest research on energy sanctions against Russia.
- Review the Timeline of Western Sanctions and Russian Countermeasures to understand how both sides have adapted since the full-scale invasion of Ukraine.
For more expert insights and economic analysis, visit the SITE website.
Russia’s Shadow Fleet: Sanctions Needed on Core Tankers, KSE Institute Urges
A new analysis by the KSE Institute reveals details about Russia’s shadow fleet and urges immediate action. The report, titled “The Core of Russia’s Shadow Fleet: Identifying Targets for Future Tanker Designations,” uncovers 86 tankers evading sanctions. These tankers allow Russia to continue oil exports despite the G7 price cap.
Key Insights into Russia’s Core Shadow Fleet
From January 2023 to June 2024, 307 shadow tankers in the Russia shadow fleet carried Russian crude oil. During the same period, 432 tankers from the fleet transported Russian oil products across various regions. Of these, 45 crude oil tankers and 41 oil product tankers are core parts of the fleet. However, only eight core vessels from the Russia shadow fleet have been sanctioned by the US, EU, or UK. As a result, many critical Russian tankers still operate undetected, evading current sanctions. Although 64 shadow fleet vessels were sanctioned since the fall of 2023, much of the fleet remains active.
UAE and Turkey Fuel Shadow Fleet Growth
The report highlights how UAE and Turkish companies are central to Russia’s shadow fleet operations. UAE-based Stream Ship Management Fzco manages 28 of the 45 core crude oil tankers. Turkish firms oversee a large share of the core oil product fleet. Frequent changes in vessel management after sanctions make enforcement more difficult, allowing operations to continue under new entities.
Strengthening Sanctions on Core Vessels
The KSE Institute urges governments to apply more pressure by targeting additional shadow fleet vessels. Sanctioning the remaining 45 crude oil and 41 oil product tankers from the core fleet would severely impact Russia’s ability to export oil. This would force reliance on mainstream tankers that are subject to the price cap, tightening existing sanctions.
Conclusion: Immediate Action Needed
Russia’s shadow fleet continues to grow, supported by entities in the UAE and Turkey. Current sanctions are weakening, and the KSE Institute calls for the urgent designation of the core vessels identified in its report. This would strengthen sanctions and reduce Russia’s capacity to fund its war in Ukraine.
Additional Resources
We invite you to view the full KSE Institute report, now available on the KSE Institute website. Additionally, if you wish to explore more policy briefs published by the KSE Institute, you can do so by visiting the Institute’s page on the FREE Network’s website.
Disclaimer: The opinions expressed in policy briefs, news posts, and other publications are those of the authors and do not necessarily reflect the views of the FREE Network and its research institutes.