British Prime Minister Keir Starmer is considering a plan to sell sanctioned oil seized from a shadowy Russian tanker and transfer the money to support Ukraine in the war.
This is reported by The Telegraph, citing sources.
The 98 000 tonnes of Russian crude oil was seized from the “Smyrtos” tanker, which was intercepted by British marines in the English Channel on June 14. The vessel, which is part of a shadowy fleet, was violating British sanctions by trading in illegal oil.
The ship is now under the control of the UK Ministry of Defence and is anchored off the coast of Weymouth. The shipʼs captain, Indian national Ajay Pant, has been accused of evading sanctions.
British government sources told The Telegraph that “Smyrtos” will likely be allowed to return to Russia once the National Crime Agency investigation is complete.
However, officials believe that the 98 000 tonnes of Urals oil on board now legally belongs to the UK, meaning the government can dispose of it or sell it. The market value of the oil is around £35 million ($48 million).
The plan is still in its early stages. The money could either be transferred directly to Ukraine or used to purchase equipment and weapons for the front.
Another option is to refine the oil in the UK and use it to provide energy to households. However, it is not yet clear how exactly this would be transferred from state ownership to energy companies.
What is known about the Russian shadow fleet?
In early December 2022, the G7 members, as well as Australia and the EU, imposed price caps on Russian oil, setting a maximum price of $60 per barrel. From February 5, 2023, these countries imposed price caps on Russian petroleum products: $100 for diesel and $45 for various lubricants.
To circumvent oil sanctions, Russia has begun building a shadow fleet. This is a fleet of old tankers that turn off their beacons so that they cannot be seen by surveillance systems. These tankers are mostly operated by the Russian state-owned company “Suchkomflot”.
According to The Guardian’s September 2023 estimates, Russia’s shadow fleet consists of approximately 600 vessels, providing 70% of Russia’s oil exports and an estimated 10% of the world’s “wet cargo” fleet. It transports almost 1.7 million barrels of oil per day, generating large profits for the Kremlin.
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