Kazan Ship Details and Seafarer Feedback

In a significant move against the ongoing Russian oil trade, the United States has once again targeted oil tankers allegedly involved in violating the price cap established by the G7 and allied nations. This latest sanctions initiative includes three vessels: the 'Ligovsky Prospect' (IMO: 9256066), 'Kazan', and 'NS Century' (IMO: 9306782). While the sanctions did not explicitly name Sovcomflot, they clearly reflect the Treasury Department and Biden Administration's steadfast commitment, in collaboration with international partners, to diminish the oil revenue funding Russia's military activities in Ukraine. The sanctions come on the heels of reports indicating that Russia has been consistently breaching the agreed-upon price cap. Additionally, the European Union is evaluating the possibility of appointing Denmark as an enforcer responsible for scrutinizing documentation related to tankers, particularly in the Baltic Sea, which is vital to Russia's oil export strategy, accounting for approximately 60% of its total exports. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that three entities have been sanctioned, with the three crude oil tankers identified as blocked assets due to their association with price cap violations while transporting Russian crude oil exceeding the coalition's cap. Notably, these vessels were integrated into a fleet managed by companies based in the UAE, following increased sanctions on Sovcomflot. Registered in Liberia, the tankers are currently located in Asia; AIS data reveals the 'Ligovsky Prospect' docked in Zhoushan, the 'Kazan' at Long Xue Shipyard, and the 'NS Century' in Vadinar. U.S. officials assert that these vessels partook in exporting Russian crude oil priced beyond $60 per barrel since the price cap's implementation, having utilized services from U.S. entities during these transactions. Notably, these sanctions follow an earlier wave of actions taken in mid-October, aimed at intensifying pressure to enforce the price cap, a subject also addressed by the G7 through a warning issued to the shipping industry about potential price evasion tactics. Although oil prices remain approximately $25 above the price cap, facilitating Russia’s ability to circumvent the restrictions, reports from Reuters, referencing the International Energy Agency, indicate a slight downturn in Russian oil exports, dropping nearly 70,000 barrels per day. The U.S. government has pledged to escalate actions in the forthcoming weeks and months to further elevate the costs incurred by Russia. As oil continues to be a primary focus in efforts to reduce Russian export revenues, the situation remains dynamic on the geopolitical stage.

In a recent maritime transaction, Russian shipping giant Sovcomflot has divested its Aframax tanker 'Kazan' (IMO: 115/2003), which underwent dry docking in October 2018. The vessel has been sold to Greek shipping company New Shipping for a reported price of USD 9.8 million. This sale marks a notable shift in ownership within the competitive Aframax sector, as both companies navigate the evolving maritime landscape.