Page 112 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - ΜΑΙΟΣ 2024

GEOPOLITICS & SHIPPING

Economic sanctions are certainly not novel. On the contrary, they date back to roughly
432 BC when Athens issued the Megarian Decree banning all trade between Megara and the
Athenian empire.

CURRENT

DEVELOPMENTS

ON THE SHIPPING

SANCTIONS FRONT 1

Much has changed geopolitically since ancient times, but the general concept of
sanctions remains rather similar in today’s day and age, where they continue to
have a profound impact on shipping and international trade.
Shipping sanctions wield significant influence by shaping the movement of goods
and commodities across the world’s oceans. Against a backdrop of geopolitical
tensions and evolving regulatory frameworks, the shipping industry finds itself
under intense scrutiny and in the process of adaptation. As governments imple-
ment measures to enforce sanctions regimes and combat illicit activities, recent
developments on the shipping sanctions front have attracted attention and sparked
renewed debate.
Unfortunately, governments’ policies are not entirely in sync with public opin-
ion, or rather, with public opinion shaped by misinformed media. Sanctions have
unintentionally resulted in shipping being put under the microscope, not only by
governments but also by the media, which, for the most part, are not as famil-
iar with the nuances of international shipping. For their part, governments have
turned targeted sanctions against specific vessels and companies into broader
diplomatic negotiations impacting maritime trade routes, ultimately resulting in
the continuous transformation of the shipping sanction landscape. One major
transformation currently shaping the maritime industry is the implementation of
the Russian oil price cap.
The Russian oil price cap was introduced in late 2022 by the Price Cap Coali-
tion, comprising the G7, the European Union, and Australia, as a response to the
Russia-Ukraine war. The publicly declared objective of the oil price cap is to limit
Russia’s revenues from oil trade while ensuring a stable global oil supply and pro-
tecting energy security. The Coalition initially set the price cap on Russian crude
oil at $60 a barrel. However, by early 2023, the price cap was renewed to permit
the trading of refined Russian petroleum products, such as diesel and kerosene,
by Daniel A. Tadros, which trade at a premium to crude, to be sold for $100 per barrel. It also permitted
Chief Operating Officer at Shipowners Russian petroleum products, such as fuel oils, which typically trade at a discount
Claims Bureau, Inc., managers of the to crude, to be sold for $45 per barrel.
American Steamshipowners Mutual Protection
& Indemnity Association, Inc. At first, the price cap showed signs of success. According to the US Department

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