The European Union has taken another significant step to tighten the economic noose around Russia’s war machine, approving a new round of sanctions aimed squarely at what Brussels describes as Moscow’s “shadow fleet” – a sprawling, opaque network of vessels, intermediaries, and trading entities that has helped Russia continue exporting crude oil despite Western restrictions. The latest measures, approved by the European Council on December 15, reflect growing frustration within the bloc over Russia’s ability to adapt to sanctions and sustain its war effort in Ukraine through energy revenues.

At the heart of the new sanctions package are five individuals and four companies accused of enabling or managing tankers involved in the transport of Russian crude oil and petroleum products, often through high-risk and deceptive shipping practices. According to the European Council, the targeted firms are based in the United Arab Emirates, Vietnam, and Russia, and are alleged to play a central role in owning or operating vessels that circumvent international restrictions on Russian oil exports.

The EU’s move underscores a broader shift in sanctions policy: rather than focusing solely on Russian state entities, Brussels is increasingly targeting foreign-based intermediaries and facilitators who help Moscow bypass controls. This reflects a recognition that Russia’s ability to fund its war is no longer dependent only on direct state-to-state trade, but on a global web of private actors, shell companies, and aging tankers operating beyond traditional regulatory oversight.

One of the most prominent individuals named in the new listings is Murtaza Lakhani, a Pakistani-Canadian businessman and chief executive officer of Mercantile & Maritime. EU authorities accuse Lakhani of controlling vessels involved in transporting Russian crude oil and petroleum products while engaging in what they describe as “irregular and high-risk shipping practices.” These practices typically include ship-to-ship transfers at sea, manipulation or disabling of vessel tracking systems, and the use of complex ownership structures to obscure accountability.

The sanctions also target two Azerbaijani businessmen, Etibar Eyyub and Talat Safari, linked to the UAE-based oil trading group 2Rivers Group. According to the EU, Eyyub has played a key role in facilitating Russian oil exports through a network of companies designed to mask the true origin of the oil. Safari, meanwhile, is described as a shareholder and manager within the same group. The European Council stated that 2Rivers Group has enabled shipments of Russian oil – including supplies originating from the state-owned giant Rosneft – by concealing their provenance and routing them through opaque trading arrangements.

By singling out these actors, the EU is sending a clear signal that third-country nationals and companies will not be shielded from punitive measures if they are found to be aiding Russia’s sanctions evasion. This approach reflects mounting concern in Brussels that the shadow fleet has become one of the Kremlin’s most effective tools for sustaining energy exports since the imposition of the G7 oil price cap and EU embargoes.

Russia’s shadow fleet is estimated to consist of hundreds of mostly aging oil tankers, many acquired from the global second-hand market since the start of the Ukraine war. These vessels often operate with minimal insurance, questionable safety standards, and unclear ownership structures, raising alarms not only about sanctions enforcement but also about environmental and maritime safety risks. European officials have repeatedly warned that accidents involving such tankers could have devastating consequences, particularly in busy shipping lanes or environmentally sensitive waters.

EU foreign policy chief Kaja Kallas has been particularly vocal about the need to escalate pressure on these networks. Ahead of the approval of the new sanctions, Kallas said the bloc was preparing additional measures targeting dozens more vessels and their enablers. “We have 40 additional vessels plus enablers, and this is all for depriving Russia of the means to fund this war,” she said. “This is necessary for Ukraine to defend itself.”

Kallas’s remarks highlight the strategic logic behind the EU’s approach. Despite sanctions and price caps, Russia has continued to earn substantial revenues from oil exports, largely by redirecting shipments to Asia and relying on intermediaries willing to operate in legal grey zones. By targeting the logistical backbone of this trade – ships, managers, insurers, and traders – the EU hopes to raise the cost and complexity of sanctions evasion to the point where it significantly constrains Moscow’s income.

However, the effectiveness of such measures remains a subject of debate. Critics argue that Russia has shown remarkable adaptability, quickly finding new routes, partners, and mechanisms to keep oil flowing. They also point out that enforcement is uneven, particularly outside the EU’s jurisdiction, and that countries hosting or tolerating shadow fleet operations may lack either the capacity or the political will to crack down.

Supporters of the sanctions counter that each successive round narrows Russia’s options and increases long-term risks for those involved in facilitating its oil trade. By publicly naming individuals and companies, the EU not only freezes assets and restricts travel within the bloc, but also stigmatizes sanctioned actors in the global financial system, making it harder for them to access banking, insurance, and legitimate business partnerships.

The inclusion of entities based in the UAE and Vietnam also reflects the EU’s willingness to confront sensitive geopolitical realities. Both countries have maintained pragmatic economic ties with Russia, and Brussels’ decision to sanction companies operating from their jurisdictions may complicate diplomatic relations. Yet EU officials appear increasingly willing to accept such friction in pursuit of what they see as a core strategic objective: depriving the Kremlin of the financial resources needed to continue its war against Ukraine.

As the conflict drags on and battlefield dynamics remain uncertain, economic pressure remains one of the EU’s primary tools for influencing the course of the war. The latest sanctions against Russia’s shadow fleet illustrate a more aggressive and granular approach, one that targets not just Moscow, but the global networks that enable it. Whether this strategy will significantly dent Russia’s oil revenues remains to be seen, but it leaves little doubt about the EU’s intent to keep tightening the screws – and to expand the sanctions net even further in the months ahead.

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Source: Weekly Blitz :: Writings