First Russian Sanction Package from the New UK Government
Two and a half weeks after the newest British government was officially formed, the newly named foreign secretary, Ed Miliband, announced the first Russian sanction package of the new government. The government of the new Prime Minister, Andy Burnham, is attempting to show solidarity and consistency in policy.
The new package is modest in scope but targets the shipping and energy sector as well as banks and what it terms “shady businesses” for their role in supporting the war in Ukraine. A total of 19 listings were added to the sanctions regime.
Miliband emphasized that the first package “reinforced the UK’s commitment to the people of Ukraine by announcing new measures against those supporting the Kremlin’s war effort.” Like their predecessors, the new government said they are continuing to target the networks and revenue streams on which the Kremlin relies.
As part of the effort, the new package is targeting the LNG operations by listing a recently acquired LNG carrier. The vessel, built in Korea, was acquired by Russian interests in May and transferred to the Russian flag as the Arctic Express (IMO 9333591). It is being managed by SMP Techmanagement of St. Petersburg. The 84,000 dwt vessel is reported to already be involved in the transport of Russian gas to third countries. The vessel’s AIS shows that it departed China’s Tieshan on Wednesday, August 5.
The UK also listed an Indian ship management company, Frion Ship Management, that it asserts supported the sale of the Arctic Express into Russian ownership and control. The package follows the latest efforts in the EU, as it lists vessels recently sold into the Russian register, as Europe looks to also crack down on vessel sales to Russia.
The five additional listings include four shadow fleet crude oil tankers reportedly registered in Palau, San Marino, and Barbados. It also included one product tanker registered in Barbados. These vessels join 644 other listings in the UK database of sanctions linked to the shipping sector.
The other portion of today’s sanctions package includes four companies that the UK says are importing tantalum and niobium, rare metals critical for producing military equipment. It also lists six additional banks.
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Miliband, who had been serving until July as Energy Minister in the prior government, highlights that since taking office, he has attended the ASEAN conference in Manila, where they focused on Ukraine, and, along with the Prime Minister, met with Ukrainian President Volodymyr Zelensky. He also flew to Washington, D.C., to meet with US Secretary of State Marco Rubio to discuss Russia and Ukraine.
The UK highlights that this year alone, it imposed sanctions on over 500 individuals, entities, and ships as part of the Russian sanctions regime. They are attempting to signal that there will be consistency in the effort as the new government moves forward.
