Tanker specialist Fractal has launched a formal challenge against its blacklisting by the UK government over its role in hauling Russian oil.

The Dubai-based operator expressed “profound disappointment” over its designation by British authorities and said it was working at “clearing any misunderstandings” over its compliance record.

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British authorities on Thursday sanctioned Fractal Marine DMCC, along with Turkish operators Beks Ship Management and Active Denizcilik, for its role in the Russian energy business as “part of [President Vladimir] Putin’s shadow fleet”.

G7-linked operators are allowed to haul Russian oil but only if they comply with a capped sale price of $60 per barrel of crude and $100 or $45 for refined products.

Fractal ships have made dozens of calls to Russian ports but the company has insisted that it has always complied with the terms of the price cap. It has always denied being part of the “shadow fleet”, the term used for the estimated 675 vessels, or 7% of the global tanker fleet, involved in hauling sanctioned oil from Iran, Venezuela and Russia.

Fractal, headed by British-French dual-national Mathieu Philippe, was the only European tanker start-up that focused on Russian oil trading during the Russia-Ukraine war.

In its first response to the listing, the company said: “We are in active dialogue with the relevant UK authorities to address and resolve the concerns raised.

“The company is committed to demonstrating its adherence to international standards and its unwavering dedication to lawful and ethical business practices.”

It said it was committed to working closely with regulators, including those in the US and European Union, which did not follow the UK’s lead by including Fractal among the hundreds of businesses targeted in new sanctions on Friday.

The designation came after Philippe told TradeWinds in January that the company was looking to renew its 26-strong fleet and for new opportunities outside of Russian operations.

The listing of the company throws those plans awry, with tanker businesses hit by sanctions forced to reflag vessels and find insurance options outside of G7 providers.

Fractal was formed in Switzerland in 2022 backed by Middle Eastern investors but rapidly changed direction after the invasion of Russia. Its plans to set up a Dubai-based operation, which has been hit by UK sanctions, were accelerated after Swiss banks exited the Russian oil business.

“Fractal Marine is focused on challenging the UK designations and clearing any misunderstandings regarding our operations and compliance record,” the company said.

“We remain dedicated to transparency, open communication and the pursuit of excellence in all aspects of our business.”

Beks Ship Management also said that it was challenging its designation by the UK authorities. Active Denizcilik has been approached for comment.

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