The London-based ship registry helps Russia’s oil tankers keep operating

Three tankers under British sanctions for transporting Russian oil are flying the flag of a nation that bases its operations in London.

Galaxy, Liberty and Rigel, all of which moved barrels to Moscow this year, have switched to sailing under the flag of Barbados, one of the world’s most reputable countries for ship registration, industry data shows. Barbados’ Maritime Register is based at the country’s High Commission in London, which has diplomatic immunity.

The London link, however, will be awkward for the British government, which designated all three tanks this summer for the role they played in helping to destabilize Ukraine. At that time, they had different names, were owned by the Russian state oil company Sovcomflot and sailed under the flag of Gabon.

Commercial ships will very often sail under what are known as open registers in countries unrelated to where the ships are actually owned. This may be to make compliance with international maritime regulations more efficient and cost-effective. Those so-called flag states have an important role to play in ensuring industry safety standards.

The UK Foreign, Commonwealth and Development Office referred questions to the Treasury. The Treasury did not immediately respond to a request for comment. Giovanni Ciniglio, chief executive of the Barbados registry, confirmed that the vessels are provisionally registered under the country’s flag, but declined to comment further.

Price limit

In addition to specific sanctions on ships, the UK also participates in a price cap on Russian oil. Under the Group of Seven initiative, companies are not allowed to provide key services for Russian transport unless the goods being transported cost – or below – certain thresholds. In the case of crude oil, this limit is $60 per barrel.

Getting a Barbadian flag is good news for the three tanks. The country is on the so-called White List, published by the Paris Memorandum of Understanding on Port State Control, of nations that maintain higher standards of ship safety. Gabon does not have a ranking.

Since the UK sanctions, ownership of two of the tankers has passed to “unknown” entities in maritime databases.

Liberty, formerly NS Laguna, loaded a cargo of Russian Urali crude oil at Primorsk in the Baltic Sea on August 16 and is now in the English Channel. Its final destination is India, according to transportation information compiled by Bloomberg.

Rigel, formerly Primorsky Prospect, recently entered the Mediterranean via the Suez Canal after delivering a cargo of Russian crude oil to India.

Galaxy, formerly the Korolev Prospect, arrived off Russia’s Arctic port of Murmansk on August 12 after transiting the Northern Sea Route in the Bering Strait.

It is one of two vessels previously named as entering a long-term charter for Russia’s Sakhalin 2 project. Before it can take on that role, modifications are needed, work that could be on its way do in Murmansk.

Photo: An oil tanker sails at sunset. Photo credit: Marcelo del Pozo/Bloomberg

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