Russian Maritime Sector Targeted by EU Sanctions

Russian Maritime Sector Targeted by EU Sanctions
  • PublishedMarch 3, 2023

On February 25th, the Council of the European Union adopted unanimously a 10th package of sanctions against Russia, a year after the launch by this country of an unjustified war of aggression against Ukraine.

The Russian maritime sector is targeted in these new measures and in particular the company SUN Ship Management, a ship management company established in Dubai, which is part of PAO Sovcomflot (SCF Group), the largest Russian shipping company and specializes in the transportation of hydrocarbons as well as maintenance in the field of marine energy production.

For several months, Sun Ship Management, the company that manages the Sovcomflot fleet and operates a fleet of nearly 100 oil, LNG and chemical tankers, was suspected of circumventing EU sanctions.

By adding this entity to Annex 1 of Regulation (EU) No. 269/2014 to the Implementing Regulation (EU) 2023/429 of the Council of 25 February 2023.

The EU Council confirms that SUN Ship Management (D) Ltd. is a substantial source of income for the government of the Russian Federation, accounting for more than 70% of the country’s energy revenues and allowing the Kremlin to finance its war against Ukraine.

Other key players in the Russian maritime sector are also targeted by the sanctions such as Atomflot company, which manages the Russian icebreaker fleet and guarantees Russia’s maritime transport via the Northern Sea Route, the Arctic shortcut between Europe and Asia.

The Russian National Reassurance Company (RNRC) is also targeted by these new restrictive measures. It is the main insurer of Russian ships responsible for the export of Russian oil, since Western insurance companies have stopped covering Russian shipowners.

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  • […] the Russian invasion of Ukraine, the European Nations took measures to weaken Moscow. Exports have been mainly affected by sanctions aimed at weakening the Russian oil […]

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