Further sanctions against Russia

During the three-day G7 summit in Japan, Western leaders presented new sanctions against Russia. These actions aim to further paralyze the Russian economy and reduce its ability to finance and carry out war activities in Ukraine.

Earlier, for more than a year, sanctions have primarily included the shipping sector, but now the list of restricted sectors is much longer. It includes energy, metals, defence, transport, finance and much more, and the United States extends its activities to the service sector, from architecture to engineering, construction and production.

Our joint efforts have helped to cut Russia off from the key resources needed to maintain its armed forces. They also strongly reduced the revenue that the Kremlin is gaining to finance its war machine," said Janet Yellen, Secretary of the U.S. Treasury, accurately describing the American part of this new initiative.

Today's action will increase the pressure on Putin's ability to continue the barbarian invasion and will speed up our global efforts to thwart Russian attempts to circumvent sanctions.
Janet Yellen, U.S. Treasury Secretary

The American list of sanctions is the most extensive, covering more than 300 individual elements against 22 people and 104 entities that reach not only inside Russia but also cover a total of more than 20 countries. The sectors particularly vulnerable to US activities are the energy industry, military procurement, metals and mining, technology, as well as widely understood services. The U.S. State Department has frozen or blocked assets of nearly 200 people, entities, ships and aircraft.

A number of elements have been identified among the sanctions on shipping and shipbuilding, including the EUSF Atomflot, a subsidiary of Rosatom, responsible for maintaining the fleet of nuclear icebreakers. These sanctions also hit the development of the Arctic port of Indiga and its developer, Akvamarin Limited. Four companies involved in port planning were also listed on the list of sanctioned entities, as were Samusskiy Sudostroitelno Sudoremontniy Zavod, a Russian shipbuilding company specializing in the construction and repair of ships, which built up to ten units to facilitate logistics and cargo deliveries in the Russian Arctic region.

The US sanctions also affect the joint actions of Russia and Iran that develop the logistics network. Khazar Sea Shipping Lines, an Iranian shipowner and subsidiary of the Islamic Republic of Iran Shipping Lines, were designated by the US, which recorded more than 60 calls to Russian ports over the last year. Two other companies related to maritime trade with Iran were also subject to sanctions.

In parallel, the UK government has announced sanctions on 86 people and entities from sectors such as energy, metals, military, finance and banking, as well as other transport elements. Both the United States and the United Kingdom show examples of Ukrainian grain theft and transport as additional reasons for imposing new sanctions. The United Kingdom also cited examples of entities that have already been sanctioned according to reports.

The United States has added SSK Port to the list of operators sanctioned in the maritime sector. At the same time, sanctions include general Pawell (of 3,000 dwt load capacity) floating under the Syrian flag. He is accused of using regular sea-based circumvention techniques, such as disengaging the on-board AIS. The United States also refers to a Russian company that manages the ship Pawell. The UK also lists this vessel and its shipowner in its guidelines. It was noted that Pawell, who is 39 years old, now carries stolen cereals from Ukraine. Since 2020, this ship has been detained six times for several violations of international safety standards.

Other elements of extensive sanctioning actions include illegal shipments, the so-called "dark fleet" and other attempts to circumvent the sanctions imposed. The United Kingdom has imposed sanctions on six shipping companies and their managers, including those with direct links to Sovcomflot, a company already sanctioned for over a year. Fesco and Volga Shipping were also targeted due to their links to grain theft and their actions to avoid existing sanctions.

This is all part of the effort to stop Russia, which uses different techniques to circumvent international sanctions. These sanctions are an important tool in maintaining pressure on Russia to end its military activities in Ukraine and a number of other illegal international steps that are incompatible with international law.

Source: The Maritime Executive