Do the new sanctions of the UK and the EU restrict Russian oil trade?

The United Kingdom and the European Union have announced another package of far-reaching sanctions against the Russian "shadow float". This is an important escalation of efforts to reduce Moscow's maritime trade and hamper the financing of its military operations in Ukraine. Since the start of the war, Russia has been bypassing Western restrictions, using the " shadow float". Will the new sanctions really hit this process and limit the cash flow to the Kremlin?

The UK and the EU hit Russia's shadow float – record sanctions on tankers

Within the largest packagesanctions against Russia since 2022 have included an additional 40 units of ancillary fleet. Over the last six months, they have transported Russian oil and petroleum products worth over $5 billion. Thus, the number of Russian "shadow float" tankers subject to British sanctions increased to 133.

Every broken military supply line, every blocked ruble and every revealed factor conducive to Putin's aggression is a step towards a just and lasting peace.

British Foreign Minister, David Lamby

At the same time, the European Union, as part of the 16th package of sanctions, has included restrictions on 74 further units associated with Russian shadow fleet operations. As a result, the total number of ships sanctioned increased to 153. The new regulation focuses particularly on operators of dangerous tankers, which often operate without adequate safety standards.

EU tightens Russia's sanctions – no more Russian oil storage in Europe

The European Union has also decided to tighten up maritime restrictions, completely prohibiting the temporary storage of Russian oil and petroleum products in EU ports.This decisioncloses the gap that previously enabled Moscow to use European infrastructure under the price cap mechanism.

Moreover, sanctions include strategic port infrastructure. The European Union has banned transactions with key Russian ports of Ust-Luga and Primorsk in the Baltic Sea and New Russian ports in the Black Sea.

UK and EU strengthen control of Russian oil tankers

The UK and the European Union have also announced stepping up the monitoring of third countries' actions that may facilitate circumvention. Particular attention has been paid to entities supporting Russian maritime trade operations and participating in the activities of "shadow floats".

The European Commission points out that Russia is actively trying to circumvent the sanctions imposed, indicating their real impact on the country's economy. It is therefore necessary to step up efforts to prevent circumvention of restrictions and to establish closer cooperation with third countries.

Sanctions weaken Russian oil, Trump does not add new

The new sanctions, combined with earlier restrictions on the Russian energy sector, aim to hit the Kremlin's ability to fund the war in Ukraine.Revenue from oil exportsare still a key source of funding for Russian military operations.

In early January, the President-in-Office, Joe Biden, identified 183 ships associated with the Russian "shadow float" and several dozen companies dealing in oil trade, oil services and insurance. However, Donald Trump's new administration, which took over in January 2025, has not yet imposed additional sanctions on Russia despite announcements from mid-January.

Did earlier sanctions weaken the Russian oil sector?

The Western restrictions so far, including the EU price cap mechanism and the ban on imports of Russian oil by sea, had a significant impact on the Russian energy sector, but did not lead to a collapse in its income. According to data from the International Energy Agency (IEA), in 2023 Russia managed to maintain oil exports of around 7 million barrels a day, mainly by redirecting supplies to Asia – especially to China and India.

However, according to Bloomberg, after the last package of US sanctions, Russian oil transport costs increased even three times – from 1.5 million to $5.5 million for voyage on the Russia–China route.In addition, partThe Russian oil tankers are stuck off the coast of China because the ports there began to limit the dispersalCargo "Shadow float" units.

However, the rebates that Moscow had to offer to countries interested in purchasing this raw material in fear of sanctions significantly reduced its revenue. In 2023, the budget revenue from exports of energy raw materials was about 30% lower than in 2022, which forced the Kremlin to increase the budget deficit and a more aggressive search for alternative sources of war funding.

The increased activity of "shadow floats" also involves an increasing ecological threat. According to the Financial Times, in 2024 it carried 70% more oil than in 2023, and many units are old and low-insured tankers that do not meet international safety standards. The failure of such a ship can lead to a major ecological disaster, especially in the Baltic Sea and the Black Sea.

Will Britain and the EU weaken the funding of the Kremlin?

Will further sanctions by the UK and the EU become one of the most serious blows against the Russian "shadow float" since the start of the war in Ukraine? They aim not only to reduce trade in raw materials, but also to increase the costs of circumventing restrictions and to close the gap allowing Moscow to use European infrastructure.

However, recent experience shows that Moscow is still finding ways to adapt. Will the coordinated actions of the West produce the expected results this time? The coming months will show whether the West can effectively cut Moscow off from oil profits, or the Kremlin will again find a way around the restrictions.

Written by Mariusz Dasiewicz