(Reuters) – The European Union is proposing to sanction Russian oil shipping giant Sovcomflot PJSC in a move to limit the Kremlin’s ability to finance its war against Ukraine, Bloomberg News reported on Tuesday, citing a document to the which had access.
The move would follow similar punitive measures imposed on the main group of Russian oil tankers in early 2024 by the US, with Washington pushing to tighten the screws on Moscow over its war in Ukraine that Russia started in 2022.
In a rare admission by a major Russian company of the damage that Western restrictions against Moscow are causing, the head of Sovcomflot said last week that US sanctions could impact this year’s revenue and limit the company’s activity.
The company did not immediately respond to Reuters’ request for comment on the possibility of EU sanctions.
The European Commission declined to comment on the Bloomberg report, saying the Council never comments on potential listings before the decision is finalized.
Sovcomflot, which was previously one of the world’s leading tanker operators, transported 75 million metric tons of oil in 2023, mainly to markets in China, India and the Mediterranean.
(Reporting by Mrinmay Dey in Bengaluru and Lidia Kelly in Melbourne; Editing by David Gregorio and Louise Heavens)
