According to the New York Times, Russia is circumventing U.S.-led sanctions aimed at limiting energy revenues by using a fleet of “shadow tankers” to sell oil at high prices.
After the Ukraine war began in February 2022, Western countries, led by the United States, imposed a price cap of $60 per barrel on Russian crude oil, which policy proponents believe would impose a kind of burden on developing countries. They argued that it would significantly limit Russia’s ability to generate oil cash while imposing coercive costs. . However, Russia has used a fleet of “shadow tankers” (vessels that are not registered or registered in countries that are not parties to the price cap agreement) to circumvent the restrictions, thereby reducing oil sales. They succeeded in selling 70% of their products at prices higher than those in Western countries. , New York Times reportedhe said, citing a new report from the Kyiv Graduate Institute of Economics.
According to the NYT, Russia managed to sell about 75 million barrels of oil per month in the first half of 2024 using ships with an average age of 18 years. Russia has spent about $10 billion developing its “shadow tanker” fleet. (Related: Biden administration delays oil sanctions on Russia, Iran to keep gas prices down ahead of election)
As labor shortage worsens, Ukraine reportedly dispatches cooks and mechanics to the front lines of the war against Russiahttps://t.co/aLDjzZsW9j
— Daily Caller (@DailyCaller) August 18, 2024
Additionally, ships that are part of Russia’s “shadow tanker” fleet, or that are subject to sanctions for violating price caps, transported record amounts of oil and related products in September. NYT reported. Some of these ships delivered to ports in China and India, buyers that have bought significant amounts of Russian oil despite Western sanctions against Putin’s economy.
Some officials within the Biden-Harris administration want the government to take a tougher stance on the “shadow tanker” fleet to keep pressure on President Putin, but the crackdown could push energy prices higher. Some people support moderation, concerned about the possibility of a rise in prices. According to the NYT, prices are rising as a pivotal presidential election approaches. More broadly, policymakers are being particularly cautious in their response to Russia’s energy industry, given the risk of war between Iran and Israel, which is likely to increase prices.
While the United States and its allies continue to work on enforcement, Russia continues to sell oil at suboptimal prices and spend billions of dollars on a fleet of “shadow tankers.” This means that even if sanctions are being circumvented to some extent, they are still successful, one US official said. The official, who requested anonymity to speak freely about the matter, told the NYT.
The White House and Treasury Department did not immediately respond to requests for comment.
All content produced by the Daily Caller News Foundation, an independent, nonpartisan news distribution service, is available free of charge to legitimate news publishers with large audiences. All republished articles must include our logo, reporter byline, and DCNF affiliation. If you have any questions about our guidelines or partnering with us, please contact us at licensing@dailycallernewsfoundation.org.
