US Sanctions on Russia's 'Dark Fleet' in Final Days of Biden Administration

In one of their final acts before leaving office, the Biden administration enacted its most extensive sanctions to date, targeting Russia's 'dark fleet' and the country's oil production and exports.

This unprecedented move, taken by the Office of Foreign Assets Control (OFAC) in early January, added sanctions to 183 vessels, including 155 oil tankers, and targets key players in the Russian energy sector.

Key energy corporations, such as Gazprom Neft and Surgutneftegas, along with their affiliates and top executives, came under the sanctions umbrella. Significant Russian shipping firms, including Sovcomflot and several operators of the ‘dark fleet’, were also targeted. 

The sanctions also extended to Russian-based marine insurers Ingosstrakh and Alfastrakhovanie, along with companies like China’s Wison, which supplied modules to the Arctic LNG 2 project.

According to data from maritime broker Braemar, the newly sanctioned tankers were responsible for transporting 45% of Russia’s crude oil exports in 2024 and 7% of its refined oil products. 

Braemar claimed that 54 of these sanctioned tankers were laden with cargo at the time of the sanctions, having loaded in Russia or Malaysia. The tankers needed to be replaced in the short term with compliant ships, resulting in higher freight rates.

In a related development, German authorities were recently compelled to intervene to rescue a troubled shadow tanker in the Baltic Sea. 

The 19-year-old vessel, Eventin, was carrying nearly 100,000 tons of Russian oil when it broke down, and was subsequently towed to the German port of Sassnitz.

Germany's foreign minister, Annalena Baerbock, sharply criticised Russia’s reliance on ageing tankers within its shadow fleet, labelling it a threat to European security. 

“By ruthlessly deploying a fleet of rusty tankers, [Russian president Vladimir] Putin is not only circumventing the sanctions but is also willingly accepting that tourism on the Baltic Sea will come to a standstill,” Baerbock said.

Baerbock also highlighted that the average age of Russia’s shadow fleet is 21 years, notably older than the global average of 13 years.

As a final act of the Biden presidency, the US signalled its stance against Russian defiance and its readiness to enforce stringent economic measures on those undermining international sanctions.
 

Sanctions support with Shearwater Law

Geopolitical events have pushed sanctions high up the agenda for everyone involved in the shipping industry.

For vessel owners and charterers, commodity traders and individual business owners, the spectre of sanctions - and the consequences of breaching those sanctions - loom large.

Shearwater Law is familiar with all aspects of sanctions laid out by major sanctions bodies, so whether you’re dealing with sanctions for the first time, or you require assistance with a sanctions dispute or investigation, Shearwater Law can help.

Contact Shearwater Law today