The European Union, as part of its 21st sanctions package against Russia, has allowed member states to sell Russian oil and petroleum products that their authorities have seized or confiscated from tankers of the 'shadow fleet.' The new rules are contained in an EU Council regulation that entered into force on July 24, The Insider reported.
Until now, the EU oil embargo prohibited buying, importing, and transporting Russian oil. This ban did not prevent individual countries from detaining tankers or seizing their cargo if there were grounds under national law, but it did not allow them to fully dispose of the seized oil — for example, by selling it to a third party. The new regulation removes this restriction for cargo seized in the course of administrative or judicial proceedings.
Until a possible sale, the oil must remain under the actual control of the authorities of an EU country or an organization acting on their behalf. It can be transported, temporarily stored on EU territory, and placed in a free customs zone. Authorities may also permit financial, technical, and brokerage services related to the cargo. However, none of the operations should result in the transfer of money or other resources to Russian citizens, companies, or organizations registered in Russia.
As Euractiv wrote, citing a European official, the seizure of petroleum products from detained tankers happens frequently, but 'the question was what to do with the cargo,' which is 'very valuable.' The new EU rules also allow the sale of grain transported by such tankers.
In recent months, European countries have increasingly detained and inspected tankers of Russia's 'shadow fleet.' In June, French authorities detained the laden tanker DELIVER off the coast of Sicily, which is under EU sanctions. The formal basis was suspicion of illegal use of a flag. In July, the EU's Operation IRINI boarded the tanker SOUTH STAR to check its registration. It is also under European sanctions and, according to Ukrainian intelligence, is used for transshipment of Russian petroleum products.
A similar issue has already arisen in the United Kingdom, which is not an EU member. After the detention of the tanker SMYRTOS in the English Channel, British authorities began considering the sale of the 98,000 tons of Urals oil on board. Its value was estimated at £35 million, and the proceeds were proposed to be directed to support Ukraine, The Telegraph reported.
The 21st sanctions package also added 41 more vessels to the sanctions list (bringing the total to 673), eight organizations, and one individual linked to the activities of the 'shadow fleet.' For the first time, an agency that recruits crews for 'shadow fleet' vessels and a bunkering vessel that refuels tankers came under sanctions. In addition, the EU suspended until July 15, 2027, the automatic review of the price cap on Russian oil.