As Russian forces continue to press deeper into Ukraine, the web of sanctions against Moscow is growing.
US President Joe Biden has banned oil imports from Russia, while the UK and the European Union have started to pull back from energy imports from the country in a more gradual way.
TradeWinds reporters across the globe are covering the shipping implications on the Russia-Ukraine crisis.
The EU has placed a kibosh onexports of marine equipment to Russia, a move that has also been taken by the likes of the US and South Korea.
A Russian oligarch can’t even feel safe owning a London football team or luxury yacht anymore, as Roman Abramovich learned the hard way this week.
But companies aren’t waiting for authorities to tell them that their sector needs to back away from Russia next. McDonald’s won’t be selling Big Macs, or those Western Gourmet Burger made for the Russian market for that matter, and St Petersburg residents won’t be able to spend those devaluing rubles on a Starbucks skinny latte with a sprinkle of cinnamon.
Somehow even long-dead Tchaikovsky is feeling the pressure, with the “1812 Overture” pulled from the programme at Wales’ Cardiff Philharmonic Orchestra.
Shipping, which is global at its very essence, is feeling it too.
Here are a few examples of how the global corporate pullback from Russia is playing out in the maritime industry, as reported by TradeWinds’ global team of reporters:
- Correspondent Bob Rust learned that John Fredriksen-backed tanker owner Frontline is closing out its last charter commitments to carry Russian cargoes, with an LR2 tanker taking the last load at Novorossiysk. “There’s really only one ship you have to wish me good luck on, and that’s it,” Frontline Management chief executive Lars Barstad said.
- In the energy sector, self-sanctioning is growing. Even before Biden’s energy imports decision, Poten & Partners marine research and consulting manager Erik Broekhuizen said there was already what effectively amounts to a ban on Russian crude and products. Norway’s SEB Research said Russia’s oil exports were already close to frozen, with one Trafigura cargo finding no buyers.
- After Shell announced a pull-out from Russian oil and gas business, questions in shipping turned to what will happen to the energy giant’s charter deals with Moscow shipowner Sovcomflot (SCF Group).
- Russian ship an aviation lessor State Transport Leasing Co (GTLK) has not been sanctioned, but its chairman stepped down after appearing on an EU blacklist. Questions are swirling about whether the Kremlin-linked outfit could eventually face a sanctions blow.
- Classification societies are reviewing their business with Russian shipping, and Lloyd’s Register has made its decision. The UK class giant will withdraw business with Russian entities.
- But some shipping companies couldn’t get out of a Russian deal if they wanted to. Navigator Holdings has revealed that four of its LPG carriers are on charters to Russian counterparties, and the New York-listed outfit is unable to unwind the agreements.
Click here to read all our coverage of the shipping implications of the Russia-Ukraine conflict.
