The Dubai-based unit of Russian oil specialist Fractal Shipping has no more tankers under its management after being hit with UK sanctions nearly two months ago, ownership databases show.
The bulk of the ship manager’s fleet — which peaked at 30 vessels in 2023 — has been shifted to three new management companies in Dubai and Turkey, a process that began when Fractal was blacklisted by the UK in February, according to Equasis.
Two other vessels formerly on its books have changed name and were re-registered to new operators after the Geneva-based outfit lost an initial court appeal against the British government decision last month.
The government targeted the company on 22 February in measures announced to coincide with the second anniversary of the invasion of Ukraine.
It claimed that the company was “obtaining a benefit from or supporting” the Russian government but gave no further information about the alleged breach of sanctions rules.
Although Fractal had shipped Russian oil following the invasion of Ukraine, chief executive Mathieu Philippe denied breaching sanctions regulations, including the oil price cap, a mechanism aimed at limiting Moscow’s revenues.
He told TradeWinds in January that he had visited Washington DC to speak to US government officials to ensure he was on the right side of sanctions rules.
He also said he had secured attestation documents that showed the oils were sold below the price caps.
The company hired one of the UK’s top sanctions lawyers to challenge the UK government’s listing because of the devastating impact on the company.
The company called the listing “entirely baseless” and claimed that a US official had expressed surprise at the British move.
The company’s barrister, Maya Lester, told a London court last month that the Dubai unit, Fractal Marine DMCC, was “unable to operate, unable to pay its staff” and vessel owners had no choice but to replace Fractal Marine with a competitor, according to a report by Bloomberg.
The owners of the vessels have not been disclosed. The company was initially set up with Qatari backers but they withdrew after the start of the war and its backers were from Dubai, Philippe told TradeWinds.
The company had warned that it would be forced into liquidation if it could not reverse the British decision and had been forced to close down its accounts. But the judge said the company could not challenge the government’s decision at that stage.
Fractal has said it would continue to challenge the blacklisting. It announced on 11 March, before the court decision, that it was starting the process of liquidating its Dubai unit.
TradeWinds reported in March that the management changes had seen six tankers shift to Turkey’s Westanker Denizcilik, a firm set up in February, according to a database of new businesses run by the Istanbul Chamber of Commerce.
Six others have gone to United Arab Emirates-based BPT Shipping. Eleven more have moved to Dubai’s Laguna Shipping & Trading. They are the only vessels on the companies’ books.
The 11 that went to Laguna included the 150,000-dwt Charvi (built 2006) which loaded cargo from Russia’s Sheskharis Black Sea terminal less than two weeks after the blacklisting, according to Kpler ship tracking data.
It is due to discharge its cargo at the Indian port of Kochi on Thursday, the data suggests.
Fractal has been approached for comment.
Read more
- Sanctioned shipowner Fractal shuffles management of tanker fleet after UK crackdown
- UK inquiry to probe results of shipping sanctions
- P&I clubs pull cover after UK blacklists tanker operator Fractal
- Tanker newcomer Fractal challenges UK blacklisting over Russia role
- UK sanctions tanker newcomer Fractal and Turkey’s Beks over Russia trades
