EU to Allow Sale of Seized Russian Tanker Oil

As part of its 21st package of sanctions against Russia, the European Union has approved a measure allowing member states to confiscate and subsequently sell Russian oil or other cargo transported on ships from the so-called shadow fleet once the vessels have been detained, European Conservative reports.

Until now, it was only possible to detain the vessels, with the cargo remaining on board. According to Brussels, the new mechanism is intended to more significantly limit Moscow's revenue from oil exports. At the same time, the EU has kept the price cap on Russian oil at $44 per barrel for the next 12 months.

The European Commission estimates that the combined measures will cost Russia approximately $3.5bn in annual oil revenues.

Moscow has labeled the seizure of cargo "piracy" and has said it will consider legal and other countermeasures.

However, implementation of the measure may run into disputes over international maritime law, as decisions on confiscation will be made by the national courts of individual countries.

(mja)