The European Commission announced on Tuesday that the EU had adopted four sets sanctions against Russia for the war in Ukraine, including a 17th set of measures targeting Moscow's Shadow Fleet, as well as measures relating to chemical weapons and human rights, and hybrid threats.

The EU and Western allies are cracking down more and more on the shadow fleet of Russian tankers, and other actors who work to circumvent Group of Seven Nations (G7) price caps on Russian crude that have been in place since 2022.

The cap was intended to allow Russian oil be sold to a third country using Western insurance services, provided that the price of the barrel was not more than $60.

The crackdown is beginning to have an impact, and the EU plans to push for a price cap that's lower this week at a G7 meeting in Canada. The main source of income for Russia is oil and gas exports, which are used to fund its war in Ukraine.

Four new sets of sanctions will target over 130 entities and people. EU sources say that as part of the 17th Package, the EU is going to list 75 new entities, including the major Russian oil company Surgutneftegaz and a shipping insurer, along with four shadow fleet management companies involved in the UAE.

The EU briefly considered imposing sanctions against the Dubai branch Litasco, which is the trading arm for Russia's number one oil producer. EU sources claim that the EU removed Lukoil from its list due to Hungarian objections and a weaker legal basis. They did however list Litasco’s Dubai shipping subsidiary Eiger Shipping DMCC.

The list now includes 324 vessels. Of these, 183 are oil tanks.

The EU is in contact with countries who provide tanker registrations to try to stop Moscow from using so-called "flags of convenience", which are registered in countries other than the actual owner.

Sources confirm that the flags used in the latest round included African nations such as Sierra Leone and Gabon, Caribbean and Pacific Islands, India, Azerbaijan, and the landlocked European nation of San Marino.

The package also tightens up measures on the sale of dual use items, such as products or technologies that can be repurposed for Russia's militaries. It lists companies in China, Belarus, and Israel who support Russia's industrial complex. (Reporting and editing by William Maclean, Julia Payne)

(source: Reuters)