Sanctions package aims to limit Russian war efforts

The EU has approved its 17th sanctions package against Russia, focusing on the shadow fleet – targeting tankers operating outside regulatory oversight, often used to move Russian oil at prices exceeding the established price cap.

The goal is to limit Russia’s ability to fund its war economy by cracking down on tankers operating under unclear ownership or registration. While full details are still pending, the measures are expected to restrict access to ports, insurance, and services for these vessels.

Compliant tanker market may stand to benefit
Sanctions could reduce available tonnage, particularly in the Aframax and Suezmax segments that are heavily involved in Russian oil transport. This may support freight rates for compliant ships and deepen the divide between sanctioned and non-sanctioned tonnage.

The overall impact depends on how strongly the sanctions are enforced, but the move further tightens the global fleet supply.