Sanctions on Russian oil cause chaos in the tanker market
By Rhod Mackenzie
The new US sanctions will cause the already closed grey fleet that transports Russian oil to become even more restricted, further disrupting the global tanker market. and causing more chaos in the already chaoic sector.
The number of tankers in the grey fleet, which carries sanctioned oil from Iran, Venezuela, and Russia, has increased from 400 to 700 over the past two years, as reported weekly by BRS.
According to analyts the introduction of new US sanctions on carriers of oil and petroleum products from Russia will cause the 'grey fleet' to become even more closed.
BRS predicts that this will have negative consequences over time. Essentially, the fleet of grey tankers will become even opaque, and companies with vessels involved in Russian trade may begin to specialize only in sanctioned or alternative transportation.
The ship broker believes that this could cause problems for Russian suppliers and others. Competition for tankers will increase, leading to further chaos in the already tight tanker market.
For instance, in the past, ships were used to transport Russian oil from Baltic ports to the Middle East, India, and China. On their return journey, they would deliver raw materials from the Middle East to EU countries.
According to the Arctic Securities report, it remains to be seen whether Russia can continue to maintain its shadow fleet, but this does not make the situation any easier.
Independent industrial expert Maxim Khudalov previously noted to EADaily that sanctions accelerate the delimitation of the tanker market. Shipowners will have to divide into those who carry only sanctioned oil and those who do not.
In the West, it is believed that the restrictions will force Russian companies to return to EU tankers. Through them, they can control the price ceiling established by the G7 countries and the European Union for third countries according to a British official talking to Bloomberg. The West has repeatedly expressed interest in maintaining Russian oil supplies to avoid a new energy crisis, but they are attempting to limit Russia's income from oil sales.
According to EADaily, on the second anniversary of the start of the SMO in Ukraine, the US Treasury imposed new sanctions on ships and shipowners involved in the transportation of Russian oil. Restrictions were also placed on an additional 14 tankers owned by Russian company Sovcomflot. The UK recently imposed sanctions on three tanker owners from Switzerland and Turkey, namely Fractal, Beks Ship Management, and Active Shipping.
This brings the total number of tankers subject to sanctions since October to over 100, including 21 Sovcomflot vessels. Approximately 25% of the fleet, which is not under Western control but is used for transporting Russian oil and petroleum products, has reportedly been subjected to restrictions for allegedly violating the price ceiling.
