Western governments are escalating discussions on one of the most aggressive measures yet to restrict the oil revenue that continues to finance Moscow’s war in Ukraine. G7 nations and the European Union are now considering a full ban on providing maritime services — shipping, insurance and other transport support — for Russian crude exports, according to six sources cited by Reuters. The move would dismantle the existing price-cap regime and target the seaborne shipments that still rely heavily on Western vessels and insurers.
Russia exports more than a third of its crude using tankers owned or insured by Western entities, many of which sail under EU-linked flags such as Greece, Malta and Cyprus. A blanket ban would block this access, forcing Moscow to depend almost entirely on its shadow fleet — a sprawling network of older and lightly regulated tankers that operate outside Western insurance systems to dodge sanctions.
The proposal is being weighed for inclusion in the EU’s next sanctions package, expected in early 2026, with Brussels hoping to align the step with a collective G7 decision before formal adoption. British and US officials are currently steering the talks, though Washington’s position will ultimately depend on the strategy President Donald Trump’s administration adopts as it pursues the Ukraine-Russia peace negotiations it is trying to broker.
If implemented, the maritime services ban would represent the closest G7 and EU governments have come to a near-total blockade of Russian oil since the 2022 invasion of Ukraine.
Moscow has spent the past two years expanding its workaround system in anticipation of tighter restrictions. It has rerouted much of its crude to India and China using its own and other shadow-fleet tankers — vessels that often operate under obscure ownership, limited transparency and weaker safety oversight. According to the Centre for Research on Energy and Clean Air, 44 per cent of Russian oil exports in October moved on sanctioned shadow ships, 18 per cent on non-sanctioned shadow ships, and 38 per cent on Western-linked tankers. Data from Lloyd’s List Intelligence suggests that the combined sanctioned shadow fleet moving restricted oil for Russia, Iran and Venezuela now includes 1,423 vessels.
The objective articulated by Western governments is twofold: reduce the Kremlin’s wartime earnings while preventing volatility in global oil markets. If the maritime ban goes forward, Russia will face a difficult choice — dramatically expand its shadow fleet at significant cost and risk, or accept lower export volumes and reduced revenues.
Governments in Washington, London, Brussels and Ottawa did not respond to Reuters’ requests for comment.
