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Russian Oil ‘Shadow Trade’ Could Fuel De-Risking, Officials Warn

By Chelsea Carrick and Fred Williams

Western governments warned in an advisory Thursday that the growing "shadow trade" of Russian crude oil at sanctions-prohibited prices could lead to widespread de-risking of the global maritime industry, which would then struggle to find "reputable" sources of financing. Australia, the EU and the Group-of Seven-industrialized nations published the advisory, which addresses "industry stakeholders," in conjunction with the U.S. designation of Emirati shipper Lumber Marine SA and Turkey-based Ice Pearl Navigation Corp. for allegedly transporting Russia-sourced crude oil priced above the Western-imposed $60-per-barrel cap. Banks that issue letters of credit and other instruments of trade finance should view the advisory...

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