The European Union is considering imposing sanctions against Litasco Middle East DMCC, the trading division of Russian oil giant Lukoil PJSC based in Dubai, as part of new sweeping measures targeting Moscow's shadow tanker fleet, UNN reports, citing Bloomberg.
Details
The move, outlined in documents seen by Bloomberg, would be the first time Western governments have attempted to sanction a Litasco unit since the invasion of Ukraine. Its parent company, Lukoil, was the second-largest seller of Russian crude oil in foreign markets last year.
The proposals must be supported by all member states and may change before they are adopted. They are part of the EU's 17th package of sanctions against Moscow over its invasion of Ukraine, as the bloc seeks to increase pressure on the Kremlin by hitting its energy revenues and ability to wage war against its neighbor.
Litasco Middle East is under attack for allegedly facilitating the growth of the so-called shadow fleet of vessels carrying Russian oil, according to the proposal. The build-up of old and unregulated tankers has led European capitals to call for tougher sanctions on Moscow's energy revenues in an attempt to pressure Russian dictator Vladimir Putin to end his war.
Let's add
In total, the measures will target about 60 individuals and about 150 ships, bringing the number of ships sanctioned by the EU to more than 300, as Bloomberg previously reported.
The list also includes VSK, the largest Russian insurance company, which was blacklisted by British authorities last year, and PJSC Surgutneftegaz, a company that the Biden administration sanctioned before leaving office earlier this year.
The latter was the third-largest Russian crude oil exporter, accounting for nearly 12% of last year's sales to foreign markets, excluding former Soviet countries, according to Bloomberg calculations based on industry data.
Litasco as a whole has been recovering in recent months, hiring traders in various offices around the world. The company faced an outflow of staff after Russia launched its invasion in 2022.
The publication recalls that the EU intends to adopt a package of sanctions at the end of this month.