LONDON: The European Union (EU) embargo on Russian oil and an international cap on the prices of the country’s crude is disrupting the maritime transport sector.
The European Union (EU) on Monday enforced an embargo on Moscow’s crude shipments, the alliance’s latest sanction in retaliation for Russia’s attack in Ukraine. The current week also witnessed the start of a 60-dollar cap on a barrel of Russian crude oil, agreed upon by EU countries.
European Union and Russian oil
Aimed at depriving Moscow of key income, the steps have also slowed down the transportation of its shipments by sea. This is because Ankara has initiated to request proof of insurance from oil tankers loaded with Russian crude products, slowing their passage through the Dardanelles and Bosphorus onto world markets.
According to the Financial Times Russians have assembled a “shadow fleet” of more than hundreds of vessels seeking to deal with the Western sanctions. These spaceships are reportedly utilizing non-Western insurers and selling oil at higher prices to states that have not subscribed to the fresh sanctions.
A 1936 agreement guarantees the freedom of navigation to merchant ships passing through Turkey. However, the deal also gives Ankara the right to regulate security. — APP
