|Bitumen Africa|

Wednesday, June 12, 2024 14:00

The EU Union is proposing to sanction Russia's oil_shipping giant Sovcomflot PJSC in a move to limit the Kremlins' ability to finance it's war against Ukraine, according to a document seen by Bitumen Africa.

State-owned Sovcomflot, the largest shipping company in Russia, has been one of the key companies helping to transport Russia oil amid western restrictions imposed on the contrary following it's invasion of Ukraine in 2022.

The company also provides offshore upstream services and seaborne transportation of liquefied natural gas.

In response to Russia's war in Ukraine, the Group of Seven industrialized nation's imposed a price cap on Russia's crude and oil products exports to limit the country's access to western shipping and insurance services.

Moscow has adopted to restrictions, including a European union ban on Russian oil imports, by using a massive shadow fleet of tankers and selling it's oil to Asian client.

The European proposal follows a US decision earlier this year to sanction Sovcomflot and 14 crude oil tankers identified as being linked to the company in a bid to squeeze oil sales .

The possible EU sanction require the backing  of all member states to be approved, and the plan could change before then.

The European Union is also proposing to sanction 13 vessel's involved in shipping goods and technologies used in the defense and security sector as well as in transporting oil and petroleum products or contributing to the expansion of Russian energy sector.