EU Will Let Member States Sell Russian Oil Seized From Shadow Fleet Tankers

The EU Council granted final approval on July 23 to its 21st sanctions package against Russia, adding a provision that lets member states confiscate and sell crude oil, grain and other cargo seized from Russia's shadow fleet tankers 1234. An EU official said such seizures have grown increasingly common and that authorities previously lacked a procedure for disposing of the valuable cargo 13. The package also freezes the oil price cap at $44 per barrel for 12 months, blocking a scheduled rise to $58 12, and sanctions 41 shadow fleet vessels, eight organizations and one individual tied to the fleet 4. The EU projects the price cap will cost Russia $3.5 billion in lost oil revenue over the next year, based on an assumed $60-per-barrel Urals price 1. Recent seizures show the cargo values at stake: Belgium detained the shadow fleet tanker Ethera off the North Sea in March carrying roughly 330,000 barrels worth about $26 million, and France seized a second tanker in June holding roughly 600,000 barrels worth about $48 million 3.