On Tuesday, the British government announced sanctions against 20 ships suspected of transporting illicit Russian oil, as part of ongoing efforts to counteract Russia’s so-called shadow fleet following the invasion of Ukraine in 2022.
Key Highlights:
Sanctions Overview:
The UK imposed sanctions on 2Rivers DMCC and 2Rivers PTE LTD, accusing them of facilitating the trading of Russian oil.
The sanctioned ships include Ocean Faye, Andaman Skies, and Mianzimu, each of which has reportedly carried over 4 million barrels of Russian oil this year.
Company Response:
2Rivers expressed disappointment over the sanctions, stating that they do not reflect the company’s current operations or leadership after significant changes over the past year, including a complete exit from Russian trading activities.
The firm plans to contest the sanctions through legal and diplomatic channels and is in discussions with regulatory bodies like the U.S. Office of Foreign Assets Control and EU authorities.
Financial Impact:
A source familiar with the situation revealed that while some banks have paused new deals with 2Rivers following the sanctions, none have severed ties with the company, which collaborates with approximately 15 banks across Europe and the Middle East.
2Rivers Group, which rebranded from Coral Energy after a management buyout, suspended Russian trading in 2023. Previously, Coral Energy was a significant buyer of Russian oil in 2021 and 2022.
Government Statements:
British Prime Minister Keir Starmer stated that these sanctions aim to further pressure President Vladimir Putin’s war economy, asserting that they will contribute to the ongoing efforts to undermine Russia’s military capabilities.
Russian Response:
The Russian embassy in London condemned the sanctions, labeling them a futile attempt to disrupt international trade. They warned that such actions could exacerbate global energy market volatility and lead to higher household energy prices for British citizens.
International Collaboration:
On Monday, Britain and 11 other Western nations agreed on measures to “disrupt and deter” Russia’s shadow fleet, reinforcing collective efforts to mitigate the impact of Russian oil on global markets.
Support for Ukraine:
In addition to sanctions, Starmer announced £35 million ($44 million) in emergency support for Ukraine to assist in repairing its energy grid.