US Sanctions Russian Oil Tankers Pre-Operation for the First Time

Six oil tankers currently under construction at Russia's Zvezda shipyard have been included in the latest US sanctions announced last week, marking the first time the US has sanctioned vessels before they became operational, according to Reuters on January 17.

The publication reports that the newly sanctioned tankers are part of a broader list of 183 vessels identified by the US Treasury Department. Among the listed ships are the Nursultan Nazarbayev, Alexander Beggrov, Alexey Bogolyubov, and three as-yet-unnamed vessels designated as Zvezda 131080, Zvezda 131060, and Zvezda 131040. The Alexander Beggrov and Alexey Bogolyubov were purchased by Sovcomflot, while Rosnefteflot, a division of Rosneft, acquired the remaining four tankers. Both entities are already under US sanctions.

The new sanctions target Russia's so-called shadow fleet, a network of older vessels used to evade restrictions, including the G7’s price cap on Russian oil. Introduced in late 2022, the cap limits insurance and shipping services for Russian oil sold above $60 per barrel.

The inclusion of tankers still under construction could complicate efforts to complete the vessels, according to industry experts. Additionally, Russia may face challenges maintaining sufficient tanker capacity, with over 60% of available oil tankers recently calling at Russian ports, according to shipping data reviewed by Reuters.

Zvezda, established in 2015 as a key part of Russia's shipbuilding sector, is the only domestic shipyard capable of producing large-capacity oil and gas vessels. The shipyard itself was also added to the US sanctions list.

Previously, it was reported that Russian Arc7-class LNG tankers are undergoing repairs and dry docking at shipyards in the European Union, allowing Russia to maintain its Arctic gas transport operations despite international sanctions.