G7 finance ministers have committed to strengthening measures to prevent Russia from circumventing sanctions imposed after its full-scale invasion of Ukraine. Specifically, they plan to intensify efforts to enforce price cap restrictions on Russian oil.
Meanwhile, the specifics of additional measures have not yet been disclosed.
As a reminder, in December 2022, the G7, alongside the EU and Australia, introduced a price cap on Russian oil exports to limit Russia’s export revenue without causing a significant rise in global prices.
Despite these restrictions, some countries, particularly China, continue to import Russian oil, bypassing the sanctions. In response, G7 finance ministers also expressed their intent to tighten measures against Russia’s “shadow fleet” — tankers used to evade export restrictions. The meeting participants emphasized their goal to raise the costs for Russia of utilizing such vessels.
According to official sources, Russia is actively utilizing a shadow fleet of old, unregistered, and poorly maintained tankers to transport oil without disclosing cargo or routes. Often, these tankers load or transfer oil at sea to evade oversight. The U.S. and EU have already sanctioned certain vessels and their owners, including the Russian state company Sovcomflot.
G7 representatives also plan to tighten controls in the financial sector to prevent potential banking support for Russia’s efforts to bypass sanctions. According to the U.S. Office of Foreign Assets Control, Russian financial entities have established a network of foreign subsidiaries to facilitate the purchase or sale of sanctioned goods despite restrictions.
European Parliament representative Sandra Kalniete has also expressed concern over the limited effectiveness of sanctions on Russia’s shadow fleet. She noted that the number of these tankers has doubled over the past year and now transports 70% of Russian oil.