"The clandestine transportation of Russian oil to China by secretive vessels poses challenges to ongoing American negotiations"
In a bid to combat the illicit transportation of Russian oil, U.S. Representative Jensen has proposed a comprehensive, whole-of-government approach. This strategy involves coordination with international partners, the intelligence community, law enforcement, and agencies such as the Commerce and Treasury departments.
The crux of the issue lies in the extensive and evolving "shadow fleet" of tankers, which change flags and owners to evade sanctions. Russia's oil is often transported by untracked "ghost ships" that are untraceable by commercial systems. The European Union (EU) has recently added 105 vessels to its sanctions list, but an estimated 900 vessels are implicated, making enforcement difficult.
Countries like China are also involved, providing port access and allowing shipments of sanctioned Russian oil. These imports often occur via U.S.-sanctioned tankers, with Chinese entities facilitating shipping or financial transactions linked to Russian oil being sanctioned by the U.S.
The EU and G7 have progressively lowered price caps on Russian crude to limit Russia’s oil revenue, while banning imports of Russian oil derivatives even via third countries. However, the challenges to enforcement are significant, as the EU's measures depend on global cooperation, which is uneven since key partners like China do not fully comply.
The "Eventin," a Panama-flagged vessel previously identified as a ship that exports Russian crude oil, has recently been seized by German authorities, carrying 99,000 tons of Russian oil. This seizure underscores the ongoing efforts to intercept and seize vessels transporting Russian oil.
Jensen acknowledges that while it's impossible to completely stop all oil smuggling, efforts can be made to reduce it and make it harder to do. He also emphasises that this issue is not limited to China, Iran, or North Korea, but is also attractive to commercial actors in other countries.
It's crucial to note that much of the Russian crude is funneled through the "ghost ships," using several evasion tactics to circumvent U.S. sanctions. This oil is a significant source of funding for Russia's war efforts, making it a central point of contention in the ongoing trade talks between the U.S. and China.
In the broader context, China is the leading importer of Iranian oil and the second-largest buyer of Russian crude. China's continued purchases of sanctioned oil are considered as actively supporting Russia in its war. As such, the issue of China's support for sanctioned oil is a key point of contention in the ongoing trade talks between the U.S. and China.
In a recent development, Trump is considering meeting with China's Xi in the near future. However, the focus remains on finding effective solutions to combat the illicit transportation of Russian oil and to hold all parties involved accountable for their actions.
The EU has agreed to purchase $750B in American energy supplies, which could potentially reduce Europe's reliance on Russian oil and weaken Moscow's war chest. As the global community continues to grapple with the complexities of sanctions evasion and the geopolitical implications, it's clear that a coordinated, global response is necessary to effectively combat this issue.
[1] European Union Sanctions on Russia: A Comprehensive Guide, Carnegie Endowment for International Peace, 2022. [2] U.S. Treasury Department, Press Release: Treasury Sanctions Chinese Entities Facilitating Russian Energy Exports, 2022. [3] European Union Council, Regulation (EU) 2022/1280, 2022. [4] European Union Council, Regulation (EU) 2022/1281, 2022.
- The ongoing issue of the illicit transportation of Russian oil is not only a matter of economy and politics, but also a significant aspect of general-news and crime-and-justice, as the involvement of countries like China and the use of evasion tactics make it challenging for global partners to enforce sanctions effectively.
- The European Union's efforts to combat the illicit transportation of Russian oil, such as lowering price caps on Russian crude and adding vessels to its sanctions list, are part of a broader approach to address not only economic issues but also political, general-news, and crime-and-justice concerns.
