Bunker call puts focus on Russia sanctions and compliance 

A ship carrying Russian oil from the port of Primorsk refuelled in Gibraltar on Wednesday, putting a spotlight on the practical workings of international sanctions arising from Russia’s invasion of Ukraine. 

Under sanctions regimes imposed by the UN, the UK and the EU, imports of Russian oil are banned, as is doing business with vessels controlled by Russian interests. 

But the sanctions regime includes some exemptions to ensure stability in the global energy market, which continues to rely heavily on Russian energy exports. 

The exemptions, for example, allow the provision of services to vessels carrying Russian oil that has been purchased in accordance with a price cap on Russian crude set by the G7 nations and echoed by the EU. 

The business underway in the bay on Wednesday was legally above board, in other words, despite the backdrop of the Ukraine conflict. 

The crude oil price cap was first introduced in December 2022 by the G7 countries and the EU as a measure to limit the Kremlin’s ability to finance its war against Ukraine. 

It prohibits companies from shipping, insuring or otherwise servicing Russian oil sold above a certain price per barrel set below market benchmarks. 

But the original price cap was largely seen as ineffective and just last week, the UK and EU announced they were lowering it from $60 to $47.60 per barrel, which the UK Government said amounted to “directly slashing Putin’s profits”. 

The new cap is dynamic, set at 15% below market price. 

There are also price caps on Russian high-value refined oil products such as diesel and petrol, as well as on low-value refined oil products.  

Oil exports are one of Russia’s key vulnerabilities, with energy revenues accounting for around 30% of total federal revenues which in turn fund Russia’s war machine, the UK Government said. 

But even EU countries continue to rely on Russian energy exports.  

A report published earlier this year by the Centre for Research on Energy and Clean Air found that in 2024, EU countries spent 21.9 billion euros on Russian fossil fuels, more than the 18.7 billion euros allocated to financial aid for Ukraine. 

That includes Spanish gas imports from Russia, which are permitted despite the sanctions and according to Spanish media had more than doubled since the start of the war by 2025. 

“The UK and its EU allies are turning the screw on the Kremlin’s war chest by stemming the most valuable funding stream of its illegal war in Ukraine even further,” said Chancellor of the Exchequer Rachel Reeves, when the latest measure was announced last week. 

“This decisive step to lower the Crude Oil Price Cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability – while keeping energy markets stable.” 

EU foreign policy chief Kaja Kallas said “we will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow." 

The Gibraltar Government’s policy, in line with international sanctions regimes, is to ban access to the port or any maritime services to ships linked to any business or person connected with Russia, flying the Russian flag or registered in Russia. 

For vessels with no link to Russian interests but arriving from Russian ports and bound for countries where no ban is in place on imports, operators must provide details of cargo and, in the case of oil products, evidence of compliance with the oil price cap and any other restrictions under international sanctions. 

The vessel that triggered the focus on sanctions was a tanker called Lady Henrietta, operated by Greek interests and flying the Marshall Islands flag, which arrived here on a routine call for bunkers on Wednesday morning. 

The issue came to the fore after a Spanish newspaper claimed that the tanker had transhipped part of its cargo to a Gibraltar-flag bunker tanker while anchored in the Bay of Gibraltar, claiming this was in breach of an EU ban on Russian fuel products. 

In fact, the vessel was refuelling rather than transhipping its cargo, and its presence complied with the rules, including those of the EU. 

It was the second such ship this week to have arrived in Gibraltar from the Russian port of Primorsk to refuel before continuing its voyage. 

Neither of the ships were listed among the hundreds of vessels identified by the international sanctions regime as Russia’s “shadow fleet”, ageing ships used by the Kremlin to circumvent restrictions and move oil products around the world. 

But the scale of the Russian trade, coupled to the often-nebulous nature of maritime business where ships easily and regularly change names and flags, makes it hard to keep tabs on what is coming and going from Gibraltar’s busy anchorage zones. 

It also underlines the need for close monitoring, particularly as sanctions regimes themselves are regularly updated and expanded. 

Responding to questions on the latest bunker call, a spokesperson for the Gibraltar Government said: “The vessel is carrying Russian-origin fuel.” 

“Prior to allowing the vessel to call at Gibraltar, the vessel - and indeed any vessel with such cargo - must comply with our pertinent conditions...”  

“As stipulated...and in accordance with international - including UK, EU and UN - sanctions regimes, the vessel provided the relevant attestation confirming that the cargo complies with the oil price cap requirements.” 

“The vessel is not conducting a ship-to-ship operation. It is only calling at Gibraltar to take on bunker fuel and some stores, and some other services.”