U.S. Sanctions Shake Russian Oil Tanker Construction

Six Russian oil tankers, still under construction, were included in recent U.S. sanctions. This move has spiked oil and shipping costs, impacting Russia's oil export plans. Russia's Zvezda shipyard, Sovcomflot, and Rosneft's shipping arm, among others, were targeted as part of efforts to curb Russia's 'shadow fleet.'

In an unprecedented move by the outgoing Biden administration, six Russian oil tankers currently being built at Russia's Zvezda shipyard have been included in U.S. sanctions. This marks the first time such restrictions have been imposed on vessels that have neither set sail nor carried sanctioned cargo.

The newly enacted sanctions caused both a surge in oil prices and increased shipping costs. A Reuters review revealed that the sanctioned tankers are part of a broader list of 183 vessels. These include those already named and others such as Zvezda 131080. Notably, Sovcomflot and Rosneft's shipping arm, Rosnefteflot, associated with these tankers, are also under sanctions.

The aim of these sanctions is to undermine Russia's usage of a 'shadow fleet' to bypass a G7-imposed price cap on oil. Industry insiders suggest that ongoing sanctions could lead to a significant shortage of tankers for Russia, potentially hampering its oil export capabilities.

(With inputs from agencies.)