Russia’s sanctioned ships are still working on the global oil market

Russia continues to export oil products using vessels sanctioned by the European Union (EU), according to recent data from LSEG and market sources cited by Reuters. Despite being added to the EU’s sanctions list in June as part of the bloc’s 14th sanctions package against Russia, these vessels continue to operate, highlighting the challenges in enforcing these measures.

One of the sanctioned vessels, the Barbados-flagged Saga (formerly NS Spirit), was loaded on August 8 in the Russian Baltic port of Vysotsk with 33,000 metric tons of dark oil products. The ship is now heading for the Suez Canal, possibly en route to Asia, Reuters suggested, reflecting Russia’s strategic pivot to non-Western markets.

Another tanker, Kavia (formerly known as Hana), is currently loading diesel in the Baltic port of Primorsk. The final destination of this shipment remains unclear, but the use of such vessels underscores Russia’s ongoing efforts to circumvent EU sanctions.

Interestingly, these sanctioned vessels, which are banned from entering EU ports, remain active in international waters, where they are free to discharge their cargo outside EU territories. This is particularly significant given recent reports of Russian fuel oil being unloaded at Chinese ports by vessels on Iran-related sanctions lists.

Several other EU-sanctioned vessels have also undergone renaming and re-flagging, a common tactic to avoid detection and continue operations. Vessels such as the Serenade, N Cerna and Success have been spotted in the Sea of ​​Marmara, suggesting that despite the sanctions, Russian oil flows are still very much on the move.

These developments raise ongoing questions about the effectiveness of the current sanctions regime, especially as Russia finds alternative markets and routes to maintain its oil exports.

By Julianne Geiger for Oilprice.com

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