Russia's Sanctioned Vessels Still Working the Global Oil Market

Russia is pushing forward with oil product exports using vessels sanctioned by the European Union (EU), according to recent data from LSEG and market sources cited by Reuters. Despite being added to the EU's sanctions list in June as part of the bloc's 14th sanctions package against Russia, these vessels continue to operate, highlighting the challenges in enforcing such measures.

One of the sanctioned vessels, the Barbados-flagged Saga (previously known as NS Spirit), was loaded on August 8 at Russia's Baltic port of Vysotsk with 33,000 metric tons of dark oil products. The ship is now headed towards the Suez Canal, possibly en route to Asia, Reuters has suggested, reflecting Russia's strategic pivot towards non-Western markets.

Another tanker, the Kavia (formerly known as Hana), is currently loading diesel at the Baltic port of Primorsk. The final destination of this shipment remains unclear, but the use of such vessels underscores Russia's continued efforts to circumvent EU sanctions.

Interestingly, these sanctioned ships, which are barred from entering EU ports, remain active in international waters, where they are free to discharge their cargoes outside EU territories. This is particularly significant given the recent reports of Russian fuel oil being unloaded in Chinese ports by vessels on Iran-related sanctions lists.

Several other vessels sanctioned by the EU have also undergone renaming and reflagging, a common tactic to evade detection and continue operations. Ships like the Serenade, N Cerna, and Success have been spotted in the Sea of Marmara, suggesting that despite the sanctions, Russia's oil flows are still very much in motion.

These developments raise continued questions about the effectiveness of the current sanctions regime, especially as Russia finds alternative markets and routes to maintain its oil exports.

By Julianne Geiger for Oilprice.com

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