EU Tightens Sanctions on Russia’s Oil Trade and Shadow Fleet

The European Union has adopted a new round of sanctions aimed at curbing revenues from Russian oil exports that help finance the war in Ukraine. According to a Reuters report, the latest measures target oil traders Murtaza Lakhani and Etibar Eyyub for allegedly assisting Moscow in circumventing existing restrictions. The sanctions form part of the EU’s 19th package since the invasion began, underscoring both the scale of the regulatory effort and the compliance challenges posed by Russia’s continued ability to export crude to global markets.

Reuters explains that, despite the cumulative sanctions regime, Russia continues to sell millions of barrels of oil to buyers such as India and China, often at discounted prices. A key enabler has been the so-called shadow fleet, vessels operating largely outside Western shipping, insurance, and regulatory frameworks. The EU’s response has focused on restricting access to these essential services by prohibiting EU citizens and firms from doing business with newly listed individuals and entities.

The latest designations cover nine individuals and companies linked to Russia’s shadow fleet, including figures associated with Rosneft, Lukoil, and tanker-owning shipping firms. Analysts expect the EU to list more than 40 additional vessels, potentially bringing the total number of sanctioned ships to roughly 600. In total, the EU has now listed more than 2,600 individuals and entities across all sanctions packages.

Russia’s Permanent Mission to the EU criticized the measures, arguing they would be ineffective and harm EU citizens. For compliance professionals, the key takeaway is practical rather than political: sanctions exposure continues to expand across shipping, insurance, and energy-related counterparties. Firms should reassess screening, due diligence, and monitoring controls for indirect links to shadow-fleet activity, recognizing that enforcement risk increases as designations broaden and regulatory scrutiny intensifies.