The G7 countries and the European Union are in discussions for a complete ban on shipping services as part of efforts to reduce revenues from Russian oil, which funds Russia’s war in Ukraine, according to six sources cited by Reuters. Russia exports more than one-third of its oil via Western tankers, mainly to India and China, using Western shipping services. The remaining two-thirds of Russian oil is transported through the so-called “shadow fleet,” hundreds of tankers operating outside Western oversight and shipping standards. Russia would need to expand this fleet if the G7 and EU impose the shipping services ban.
Russian oil: EU plans for the next sanctions package
It should be noted that the G7 imposed a price cap on Russian oil in 2022, following Russia’s invasion of Ukraine to limit the Kremlin’s income, while allowing third countries to purchase Russian oil using Western services – but only if buyers paid Russia less than the price ceiling.
The shipping services ban could be included in the EU’s next sanctions package against Russia, expected to be presented in early 2026, according to three of the six sources cited by Reuters.
The 27-country EU wants to approve the ban in cooperation with the G7 before officially proposing it in the sanctions package, as two of the sources reported.
The new measure for a total ban on transactions with Russian crude oil
The sources requested anonymity due to the sensitivity of the matter. British and American officials are advancing this idea in G7 technical discussions, the sources reported. Any final US decision will depend on pressure from the Trump administration, as Washington-mediated peace talks between Ukraine and Russia continue.
Although the G7 and EU have almost completely cut Russian oil imports since 2022, the new measure would signal the closest approach to a comprehensive ban on transactions with Russian crude oil and fuels, not only at the import level, but also in shipping services and transportation.
To bypass the price cap, Russia has shipped much of its oil to Asia with its own vessels, many of which have been sanctioned by the West. These ships are old, their ownership is unclear, and they travel without Western insurance.
The administration of former US President Joe Biden argued that if Russia spent more money on tankers, it would have less money to wage war in Ukraine.
The Trump administration has been more cautious regarding the price ceiling and refused to support Britain, the EU, and Canada when they agreed to lower the ceiling for crude oil from $60 per barrel to $47.6 per barrel in September 2025.
