Panama has revoked the registration of numerous vessels that faced sanctions, possibly dealing a significant blow to Russian oil exports.
The Panama Maritime Authority is currently in the midst of revoking the registrations of 128 ships as part of an effort to crack down on blacklisted vessels.
Bloomberg
reported.
The source indicated that this action is part of an effort to target ships involved in helping Russia bypass Western sanctions on oil exports through various means.
“Shadow Fleet,” with ties to Moscow that remain concealed.
The sanctions were implemented to penalize Russia for its comprehensive assault on Ukraine.
UK supporters of Ukraine, who are part of a movement initiated by Razom We Stand, advocating for
stricter actions against Russia’s oil and gas shipments,
told
It appreciated Panama’s step, yet the nation in Central America had to advance even more.
Has reached out to the Panama Maritime Authority and the Russian Foreign Ministry for their input.
Why It Matters
After
Vladimir Putin
In light of Russia’s comprehensive invasion of Ukraine, both the G7 and
EU
imposed sanctions focused on Russia’s profitable oil industry to cut off revenue for its military campaign.
This involved setting a maximum price of $60 per barrel for seaborne oil. However, Moscow countered this move by establishing a covert fleet of ships designed to conceal their connection to Russia. This strategy enabled Russia to continue selling to key purchasers like China and India, effectively bypassing both the price limit and insurance limitations set forth by Western economic penalties.
Being home to the globe’s biggest ship registry, Panama is well-known for offering a “flag of convenience” to ships. However, it seems to be reacting to increasing worldwide demands to address sanctioned nations like Russia and Iran.
What To Know
Following a commitment made the previous year to sanction listed ships, Ramón Franco, who serves as the general director of merchant marine at the Panama Maritime Authority, stated that at least 70 oil tankers have been taken out of service with many more expected to be phased out soon, potentially resulting in losses amounting to $2 million in income.
Franco stated that Panama will not lag behind when dealing with the present difficulties within the industry, including issues like sanctions.
Last October, Panama implemented modifications that accelerate the process of de-registering a vessel—from taking six months down to just one week, according to Franco.
Russia might encounter an issue due to this action, following Germany’s confiscation of the tanker.
Eventin
, which was transporting 100,000 tons of Russian oil with a Panama-flag registration. In January, the ship lost control in the Baltic Sea and needed to be pulled by German vessels.
Imogen Payter, who leads the UK chapter ofFriends of Ukraine, stated
It was good news that Panama was contributing to the effort of thwarting Russia’s clandestine navy, yet the nation had to take additional steps to avoid becoming complicit.
utilized by Moscow to bypass sanctions.
A briefing document issued on Thursday by Razom We Stand along with its collaborators including UK Friends of Ukraine, which was reviewed by , indicated that Russia’s hidden naval force comprises a minimum of 848 tankers—comprising 463 vessels for transporting raw petroleum and 385 ships designed for carrying refined oil products.
Out of these, merely 338 ships were approved by at least one major approving authority like the European Union, the United Kingdom, Canada, or the United States.
Only 25 ships received approval from all four authorities. Russia was taking advantage of this disjointed strategy to continue selling its fossil fuels, highlighting the necessity for coordinated efforts to reduce oil income, according to the Razom We Stand report. The organization stated.
It wasn’t evident how many of these ships were registered under the Panamanian flag.
What People Are Saying
Ramon Franco, General Director of the Panama Maritime Authority, stated according to Bloomberg:
We’re certainly not planning to lag behind when confronted with the present industry challenges, and sanctions are undoubtedly part of this equation.
Imogen Payter, who leads the UK branch of Friends of Ukraine, stated:
I am pleased to hear that Panama is now contributing to the effort of dismantling Russia’s covert naval force, although I believe Panama should take additional steps to prevent Russia from utilizing the nation as a means to circumvent economic penalties.
What Happens Next
Global attention on Russia’s covert naval operations will persist, yet Moscow might attempt to evade sanction pressures by reregistering ships under flags of nations with less stringent regulations.
Svitlana Romanko, who founded Razom We Stand, stated in an official release that
Panama’s choice was seen as favorable; however, Russia’s covert naval force remains flexible. Without comprehensive collaboration among leading ship registration authorities emulating Panama’s example, Moscow will keep exploiting gaps to support its military operations, Romanko noted.
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