Russia Shifts Oil Tankers Fleet Registration to Gabon Flags to Avoid Sanctions

This shift comes as dozens of oil tankers utilized by Russia ceased operating under the flags of Liberia and the Marshall Islands in recent weeks, amidst increased sanctions pressure from the US. Instead, these vessels have begun flying the flag of Gabon.

The decision reflects a close relationship between the United States and the management companies of Liberia and the Marshall Islands flags, whose headquarters are located not within their respective countries, but in Virginia, just miles from Washington, D.C., within the jurisdiction of US sanctions.

Energy and sanctions experts note that the frequent use of these flags in the past also presents a potentially prolonged vulnerability for the Russian oil fleet, as tankers would remain liable for sanctions violations even after transitioning to a new flag beyond the reach of the US.

Commercial vessels must be registered under the flag of a specific country to ensure compliance with internationally recognized safety and environmental protection regulations.

In December 2022, the G7, EU, and Australia imposed a price cap of $60 per barrel on Russian oil exports. The cap prohibits the use of Western maritime services when tankers transport Russian oil at or above the cap.

A US official, speaking on condition of anonymity, confirmed that the registries of Liberia and the Marshall Islands qualify as Western services.

Since October, the US Department of the Treasury has imposed sanctions on approximately 41 oil tankers for violating price caps on oil, with 24 sailing under the Liberian flag and one under the Marshall Islands flag.

Nearly all other tankers have flown the flag of Gabon, including 12 out of 14 subjected to the latest sanctions on February 23.

Of the tankers under the Gabonese flag, used by the leading Russian shipping company Sovcomflot (SCF), at least three had recently sailed under the Liberian flag.

As of early February, 42 out of 147 SCF tankers had recently switched to the Gabonese flag, primarily from Liberia and Panama.

Gabon’s Minister of Transport, Loïck Muduma, confirmed to Reuters that many tankers had recently left the Liberian registry for Gabon, stating that Gabon would remove them from its list if found to be engaged in illegal activities.

Main Image: By Alexxx1979 – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=83753491

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