May 29, 2023
Oil tanker at sea

Oil tanker at sea (illustration)

┬ęShutterstock/Fotodom

The European Union proposed to ban access to European ports for ships for trying to circumvent sanctions on Russian oil. About it says in a document held by Bloomberg.

In it, the European Commission (EC) announces a sharp increase in fraudulent practices, as well as the associated environmental risks, that come from ships trying to circumvent the oil price ceiling set by the G7 states together with the EU, and a partial embargo on the supply of oil and petroleum products.

The document also says that ships that are suspected or already convicted of violating the restrictions by transshipping oil should be banned from entering European ports. Such a measure is part of a wider package of anti-Russian sanctions.

Transshipment of oil from ship to ship began to be used mainly after the entry into force of the EU ban on the transportation of oil from the Russian Federation by sea, the agency notes. European companies are prohibited from providing services for the transportation of oil from the Russian Federation to third countries if it was purchased at a price above the limit, which is $60 per barrel.

Sanctions against Russian oil came into force last December. The EU has stopped accepting fuel from the Russian Federation, which is transported by sea, and the G7 countries have introduced a price limit. It is forbidden to transport and insure more expensive oil. In response, Moscow banned suppliers from exporting oil to countries and companies if the contracts provide for a price cap mechanism. Western countries believe that the “ceiling” of prices will limit the income of the Russian Federation, aimed at ensuring the special operation in Ukraine. In March 2023, the media reported that some countries offered the EU change the price ceiling for Russian oil from $60 to $51.45 per barrel.

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