The European Union has proposed to ban ships from its ports trying to evade sanctions on Russian oil, Bloomberg reported on Monday.
The move is part of a broader sanctions package Russia after its invasion Ukraine – reports Bloomberg, whose reporters had access to EU documents. After the introduction of price caps on Russian crude oil and petroleum products, the focus was on closing legal loopholes and more effective enforcement of restrictions.
European Commission informs about “a sharp increase in fraudulent practices and the environmental risks associated with them” by ships trying to circumvent the G7 price cap and the ban on importing Russian oil to EU countries. Ships that violate the sanctions by engaging in ship-to-ship transshipment should be banned from European ports and locks, explains the EC.
Reloading points
Ship-to-ship transshipment has become crucial in bringing Russian oil to global markets after the European Union imposed sanctions on it in early December. The main transhipment points for Russian oil since December have been Ceuta, a Spanish enclave in northern Africa, and Greece near Kalamata.
Ceuta and Melilla
authorities in early February Spain sent a letter to local shipping companies reminding them that facilitating this activity is a sanctions violation. EU companies are banned from providing a range of oil-related services unless the cargo on board is purchased at $60 a barrel or below the price cap set by the G7.
Proposal for new sanctions on ships
Russia uses a huge fleet of older ships to circumvent EU and G7 restrictions. With many of these ships under 20 years of service, previous owners expected to sell them for scrap. Instead, they gave them to start-ups that still use them. As part of the planned new sanctions package, the EU has also proposed sanctioning ships that disable their navigation systems. In order to adopt these solutions, the consent of all EU Member States is needed.
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