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Tuesday, July 16, 2024

EU Proposes to Sanction Shipping Giant Sovcomflot

Maritime Activity Reports, Inc.

June 11, 2024

© Andriy Sharpilo / Adobe Stock

© Andriy Sharpilo / Adobe Stock

The European Union is proposing to sanction Russia's oil-shipping giant Sovcomflot in a move to limit the Kremlin's ability to finance its war against Ukraine, Bloomberg News reported on Tuesday, citing a document seen by it.

The move would follow similar punitive measure imposed on the leading Russian tanker group early in 2024 by the U.S., with Washington pushing to tighten the screws on Moscow for its war in Ukraine that Russia started in 2022.

In a rare admission from a major Russian business of the damage western restrictions against Moscow are having, the head of Sovcomflot said last week that the U.S. sanctions may impact this year's revenues and have limited the firm's activity.

The company has not immediately responded to Reuters' request to comment on the possibility of EU sanctions.

Sovcomflot, which was previously one of the world's leading tanker operators, transported 75 million metric tons of oil in 2023, mainly to the markets of China, India and the Mediterranean.

(Reuters - Reporting by Mrinmay Dey and Lidia Kelly; Editing by David Gregorio)