EU proposes to impose sanctions on Russian oil-shipping giant Sovcomflot

The European Union is proposing to impose sanctions on Sovcomflot Private Joint-Stock Company, a Russian state-owned energy shipping giant, to curb the Kremlin's ability to finance its war against Ukraine.

Source: Bloomberg, referring to the relevant document seen by the news agency

Details: Bloomberg reported that the EU, following suit with the US, proposes imposing sanctions on Sovcomflot and 14 oil tankers associated with the company in order to reduce Russian oil sales.

The European Union is also proposing to sanction 13 vessels involved in transporting goods and technologies for the defence and security sectors as well as oil and oil products, or aiding the expansion of the Russian energy sector.

Potential EU sanctions reportedly require the approval of all member states.

The news agency noted that Sovcomflot, Russia's largest shipping company, is one of the key firms helping to transport Russian oil under Western restrictions imposed on the country after its full-scale invasion of Ukraine. The company also provides offshore production and marine transportation services for liquefied natural gas.

In response to Russia's war against Ukraine, the Group of Seven industrialised countries imposed a price cap on Russian exports of oil and oil products to limit the country's access to Western transport and insurance services. Moscow has adapted to the restrictions, including the European Union's ban on Russian oil imports, by employing a vast shadow fleet of tankers and selling its oil to Asian customers.

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