On May 20, 2025, the United Kingdom and the European Union announced a coordinated series of sanctions targeting Russia's "shadow fleet"—a clandestine network of oil tankers employed to circumvent existing embargoes. These measures aim to disrupt Russia's ability to finance its military operations in Ukraine by impeding illicit oil exports.

The UK imposed sanctions on 100 entities across Russia's military, energy, and financial sectors, including 18 vessels identified as part of the shadow fleet. Notably, British accountant John Michael Ormerod was sanctioned for allegedly facilitating the procurement of ships for Russia's shadow fleet, marking a rare move against a UK national. Ormerod reportedly purchased at least 25 oil tankers for Lukoil, Russia’s second-largest oil producer, between December 2022 and August 2023. These transactions were handled through special-purpose companies in the Marshall Islands, funded by Lukoil's affiliate Eiger Shipping DMCC. While Ormerod claims he performed due diligence and ceased involvement by September 2023, UK authorities have frozen his assets and barred him from directorial roles.

Simultaneously, the EU sanctioned 189 additional ships, expanding the total to nearly 350 targeted vessels. These sanctions extend to entities in the UAE, Turkey, and Hong Kong that support these operations. EU foreign policy chief Kaja Kallas emphasized the necessity of these measures, stating, "Russia’s refusal to engage in meaningful negotiations warrants further action to limit its capacity to fund aggression."

Russia's shadow fleet consists of aging oil tankers with opaque ownership structures, used to transport oil and evade Western sanctions. Estimates suggest this fleet comprises between 400 to 600 vessels, many over 15 years old and often lacking proper maintenance. These ships frequently engage in deceptive shipping practices, such as turning off their Automatic Identification System (AIS) transponders to avoid detection, posing significant environmental and safety risks. In 2023–2024, more than fifty accidents were recorded, including the explosion of the Pablo tanker off Malaysia and the collision of the Ceres I and Hafnia Nile, which could have caused catastrophic oil spills.

Ukrainian President Volodymyr Zelenskyy welcomed the sanctions, emphasizing their role in limiting the Kremlin's ability to fund its war efforts. However, he urged further U.S. involvement, stating, "We appreciate the actions of our European partners but call upon the United States to join in these efforts to exert maximum pressure on Russia."

The sanctions were implemented independently of the United States, following a lack of progress in recent diplomatic efforts between U.S. President Donald Trump and Russian President Vladimir Putin. Despite a recent phone call between the two leaders, no substantial breakthrough was achieved. President Trump has signaled a reduced role in achieving peace, prompting concern among Ukraine and its allies.

The sanctions aim to enforce the $60 per barrel price cap on Russian oil set by the G7, potentially reducing Russia's oil revenues, which are crucial for funding its military operations. Ukrainian Foreign Minister Andriy Sybiha has urged the G7 to lower the price cap to $30 per barrel, arguing that a lower cap is more reasonable given current global oil prices. The effectiveness of these sanctions could influence global oil prices and trade dynamics, especially concerning countries like China and India, which are major buyers of Russian oil.

This is not the first instance of sanctions targeting Russia's shadow fleet. Previous measures have been implemented, but the current sanctions represent a more extensive and coordinated effort by the UK and EU. The inclusion of a UK national in the sanctions list is a notable development, indicating a willingness to address domestic complicity in sanctions evasion.

The recent sanctions by the UK and EU mark a significant escalation in efforts to curtail Russia's ability to finance its military operations through illicit oil exports. The effectiveness of these measures will depend on international cooperation and the ability to enforce compliance among global actors.