Panama has banned oil tankers and bulk carriers over 15 years old from registering under its flag. This move will directly impact vessels linked to Russia’s shadow fleet. The Panamanian Maritime Authority (AMP) announced the decision on 1 August 2025 to reduce detentions and prevent non-compliant ships from what is called the “ghost fleet” from entering the registry.

Panama enforces age cap to block risky vessels

The Panamanian Ship Registry updated its regulations to exclude tankers and bulk carriers aged over 15 years. According to AMP, the move aims to improve operational standards and limit the risks associated with older vessels. The registry update is part of the revised MMN 11/2024 directive, which defines the Precheck process for flagging eligibility.

A key element of the Precheck involves evaluating risks tied to sanctions and vessel operations. The General Directorate of the Merchant Marine found that between 2023 and mid-2025, 71% of all ship detentions involved older oil tankers, bulk carriers, or general cargo ships.

Panama’s registry, holding the Guinness World Record for the largest number of registered vessels, is taking additional steps to ensure compliance.

Authorities will now require extra inspections every three months for vessels classified as deficient. These checks will be conducted by the Recognized Organization responsible for issuing statutory certificates. In addition, there will be further verification of the Ship’s Safety Management System (SMS Certificate), particularly if non-conformities are detected.

The AMP stated the changes are meant to reduce detentions and increase overall safety. While the announcement did not name Russia directly, it referred to the so-called “ghost fleet” — a term widely used for Russia’s shadow fleet of old tankers used to bypass sanctions and transport oil covertly.

Thousands of lives at stake. In a column for The Washington Post, Head of the Ukrainian Presidential Office Andrii Yermak asserted that this week, US political will could bring end to Russia’s war — by targeting its energy and financial lifelines.

Yermak called for immediate and forceful sanctions against Russia, stressing that US President Donald Trump’s recent ultimatum, reducing the window for a peace deal from 50 to 10 days, was a clear and powerful message to the Kremlin.

“These signals need to be followed up with decisive action for the war to end,” Yermak said, emphasizing Ukraine’s support for Trump’s firm stance on peace through strength — “the only language Putin understands.”

Sanctions needed: Rosatom, Gazprombank, and the shadow fleet 

Yermak detailed a series of urgent sanctions Ukraine is calling for:

• Rosatom and Roscosmos: Strategic instruments of war that must face full-scale sanctions.
• Gazprombank: Still connected to SWIFT — must be cut off, alongside other smaller banks helping Russia evade restrictions.
• Microchips and Electronics: An embargo on components Russia obtains via China and Central Asia, fueling its drone and missile production.
• The Shadow Fleet: Sanctions on tankers and operators circumventing oil price caps — a crucial step to collapse Putin’s war financing.

“The tools to stop Russia exist. What is needed is the political will to use them with precision and force,” Yermak stated.

He highlighted the urgent need for targeted pressure, noting that the global community has the levers to stop the Kremlin’s military machine but only if wielded with precision and bold leadership.

US Trump’s oil tariffs rattled the Kremlin

Yermak praised Trump’s move to raise tariffs on India for buying Russian oil, calling it “a great first step” that caused panic in Moscow, and stressed that more must follow.

He also voiced support for the bipartisan bill by Senators Lindsey Graham and Richard Blumenthal, which would impose secondary sanctions on third-country firms aiding Russia’s war economy.

“Thousands of lives depend on the success of what follows,” Yermak concluded.

Europe has a chance to strike at the Kremlin’s lifelines, if it dares to act. Around 70% of the “shadow fleet” transporting Russian oil sails through the Baltic Sea, said Ukrainian Deputy Foreign Minister Andrii Sybiha at a joint press conference with Polish Foreign Minister Radosław Sikorski, UkrInform reports. 

“Let me remind you that about 70% of the shadow fleet that transports Russian oil passes through the Baltic Sea. There’s still untapped potential here, in my view, among our European partners — particularly the Baltic Sea states,” Sybiha emphasized.

Sanctions must target not just oil, but war criminals too

Sybiha also urged Western partners to impose targeted individual sanctions on Russian officials involved in the abduction of Ukrainian children and unlawful sentences against Ukrainian POWs.

Poland’s leadership role in the Baltic region

With Poland set to chair the Council of the Baltic Sea States, Sybiha said Warsaw has a chance to spearhead efforts to dismantle the Kremlin’s shadow oil network.

“Now is the time for active diplomacy, pressure, and accountability,” he stressed.

The informal gathering of the Ukrainian and Polish foreign ministers took place at Sikorski’s residence in Kobylniki, in Poland’s Kuyavian-Pomeranian Voivodeship. Discussions covered a wide range of topics, from international support for Ukraine to humanitarian issues and protecting Ukrainian citizens.

Russia’s prestigious Higher School of Economics (HSE) launched what it describes as the country’s first two-year master’s program dedicated to sanctions compliance, according to the university’s website.

Officially titled “International Corporate Compliance,” the program includes modules on “identifying and detecting sanctions risks,” Russian media outlet IStories reported on 15 July, citing university materials.

The two-year course will focus on international corporate compliance and business ethics, and will be taught in both Russian and English.

The program costs 490,000 rubles (over $6,000) per year with no state-funded places available. Graduates will be positioned to work in state corporations and companies closely cooperating with the government. 

HSE has simultaneously introduced a development course called “Sanctions Compliance.” This training teaches participants to “identify risk zones for secondary sanctions and enforcement measures by foreign and Russian regulators during transactions with Russian and foreign entities, and conduct transaction analysis for sanctions risk,” according to the reports.

Priced at 84,000 rubles ($1,049), the course includes theoretical instruction and real-world case studies and runs for 136 hours of webinars.

A third HSE professional development program focuses on working with crypto assets under sanctions conditions.

Moscow State University’s law faculty has partnered with the National Compliance Association to offer its own sanctions circumvention course for 95,000 rubles (almost $1,200).

Following Vladimir Putin’s decree, MSU is establishing a scientific-educational center for sanctions compliance.

Sanctions compliance courses reportedly were previously taught as mandatory subjects for international law department students at HSE and the Russian Presidential Academy of National Economy and Public Administration.

Sanctions on Russia

Day 1249

On 25 July, the biggest news comes from Europe.

New sanctions from the United Kingdom and the European Union are tightening the noose around Russia’s shadow fleet, the covert network of tankers that has long helped Moscow dodge oil export restrictions. This time, enforcement is not only more coordinated but also more surgical, and the effects are beginning to show across the broader infrastructure of Russia’s war economy.

Most recently, the United Kingdom unveiled its latest sanctions package, which directly targets dozens of tankers suspected of transporting Russian oil in violation of the G7 price cap, operating under flags of convenience and obscure ownership structures to avoid detection. London has now imposed asset freezes on over 100 shadow fleet vessels and sanctioned several front companies that provide critical insurance, financing, and logistical support, embedded in global maritime hubs. Beyond targeting individual vessels, the UK’s restrictions also prohibit any UK-based companies from interacting with ships or firms linked to sanctioned oil trade, thereby closing off access to a broad range of legal and financial services that have long sustained the shadow fleet.

In parallel, the European Union has adopted its 18^th sanctions package, with new measures aimed at undermining the legal and logistical foundations of shadow fleet operations. The package introduces enhanced penalties for any port offering services to re-flagged or disguised Russian tankers, creates a public blacklist of vessels involved in price cap violations, and extends sanctions to intermediaries that provide false documentation regarding the origin of cargo. Perhaps most importantly, the European Union now authorizes penalties against third-party countries, companies, and organizations that facilitate Russian circumvention efforts.

This move places significant pressure on states such as Türkiye and the United Arab Emirates, which have quietly hosted the fleet’s support infrastructure. Taken together, the actions of the United Kingdom and the European Union amount to the most comprehensive assault yet on Russia’s oil export system.

The effects of this crackdown are already being felt in the water. Earlier this year, a Russian-affiliated tanker docked in Belgium, and was only later identified as part of the shadow fleet, triggering internal reviews across European ports and prompting the introduction of stricter inspection protocols. Since that incident, insurance firms have come under increased scrutiny, maritime monitoring has intensified, and cooperation between European customs and naval forces has expanded. This makes it significantly harder for Russian tankers using falsified or re-flagged registrations to access European ports or services, forcing the fleet into riskier, longer, and more expensive trade routes.

These constraints are showing the effect of a deeper financial crisis. Russia is no longer able to rely on stable dollar-denominated transactions and has instead turned to trading with strategic partners, paying Iran 104 million dollars in gold for Shahed drones and offering weapons and industrial components to North Korea in exchange for artillery shells and frontline soldiers. As covered in a previous report, the Kremlin has also resorted to using cryptocurrency and shell companies based outside of Russia to hide the nature of arms deals and payment transfers. These improvisations may help Moscow stay afloat in the short term, but they reflect how their economic system is losing access to hard currency and struggling to sustain even the most basic elements of war finance.

The geographic consequences are just as significant. With the Baltic Sea under increasing surveillance and the Black Sea heavily contested, Russia has shifted some of its shadow fleet activity to Arctic ports such as Murmansk; however, these are a last resort, as they remain ice-free for only seven to eight months of the year. Yet even these fallback routes are becoming less viable, as the United Kingdom and Norway have increased maritime patrols in the Barents and North Seas, regions where they maintain logistical and geographic naval advantages. The result is a tightening noose around the shadow fleet: as evasion options shrink and enforcement improves, Russia’s ability to maintain oil flows and convert the revenues into weapons faces a steadily rising cost curve.

Overall, the clampdown on Russia’s shadow fleet marks a shift from symbolic pressure to systematic disruption. As enforcement expands from financial tools to maritime routes themselves, Moscow faces a narrowing horizon, where every export, workaround, and transaction becomes harder to hide, more expensive to maintain, and less capable of sustaining the war.

The EU has agreed on a new Russia sanctions package, with ambassadors reaching consensus on the bloc’s 18th sanctions round targeting key sectors of the Russian economy, Suspilne reports. Malta and Slovakia reportedly lifted their vetoes after receiving critical assurances, clearing the way for formal adoption at the EU Council’s meeting later today, 18 July.

Malta and Slovakia lift vetoes, clearing way for approval

According to Suspilne, Malta withdrew its objection after receiving written guarantees from the European Commission. The country wanted confirmation that the proposed oil price cap would not strengthen Russia’s shadow fleet, a concern tied to Malta’s large shipping sector.

Pro-Russian Slovak Prime Minister Robert Fico announced earlier on Facebook that Slovakia had also dropped its veto. His government received EU guarantees related to gas prices and supply stability. Fico, however, underlined that Slovakia would never support ending Russian gas imports after 1 January 2028.

Both countries had previously blocked consensus on the package, which was introduced by the European Commission in June. 

Package includes pipeline bans and price cap changes

The new Russia sanctions package will include a formal ban on the Nord Stream 1 and 2 pipelines. EU High Representative for Foreign Affairs and Security Policy Kaja Kallas said the bloc will also reduce the oil price cap as part of efforts to cut the Kremlin’s war revenues.

Kallas called the deal “one of the strongest” sanctions packages yet, noting it is designed to shrink Russia’s ability to finance its war in Ukraine. She also confirmed that the EU will continue to increase the costs of aggression for Moscow.

Germany and Sweden requested that the package be placed on the Council’s agenda under “Other business.” Once the General Affairs Council formally approves it, the sanctions will become legally binding.

Shadow fleet, banks, and drone tech also targeted

The package includes sanctions on 105 ships from Russia’s shadow fleet and on the entities enabling their operations. A registry of ship flags will be introduced to identify and track these vessels, which are used to obscure the origin of Russian oil.

In addition, 22 Russian banks will face new financial restrictions aimed at cutting their access to international funding. Brussels will also ban the export of European technologies used in Russian drone production.

Kallas confirmed that Chinese banks helping Russia evade restrictions are among the foreign entities targeted. The EU plans to limit their ability to support Russian financial transactions that bypass sanctions.

Rosneft refinery in India and indoctrination networks included

For the first time, the EU will sanction a foreign-based refinery—India’s largest Rosneft facility—due to its role in processing and moving Russian oil. The package also targets individuals and organizations involved in indoctrinating Ukrainian children in Russian-occupied territories.

Lithuanian Foreign Minister Kęstutis Budrys welcomed the agreement, stating that the combination of shipping, energy, and financial measures would ensure Russia remains on track to lose access to “blood money.” He also urged the US Senate to pass its own Russia sanctions legislation to align with EU efforts.

Russian President Vladimir Putin dismissed Transport Minister Roman Starovoit on July 7, following a series of high-profile disruptions to Russia's aviation and shipping sectors.

The official decree was published on Russia's legal information portal. No reason was given, but Starovoit's departure comes after nearly 300 flights were grounded at major Russian airports on July 5–6 due to security threats from Ukrainian drone attacks.

Adding to the turmoil, an explosion aboard the Eco Wizard tanker at the Ust-Luga port in Leningrad Oblast caused an ammonia leak on July 6, prompting an emergency response.

Starovoit, sanctioned by Ukraine and Western countries for his role in the war against Ukraine, had served as governor of Russia's Kursk Oblast before being appointed transport minister in May 2024.

According to the Russian state-controlled newspaper Vedomosti, Deputy Transport Minister Andrei Nikitin, a former Novgorod Oblast governor, is a leading candidate to replace Starovoit.

On July 6, the Russian Federal Aviation Agency confirmed that 287 flights were delayed or canceled at Moscow's Sheremetyevo Airport, St. Petersburg's Pulkovo Airport, and Nizhny Novgorod's Strigino Airport due to safety concerns from drone activity.

Kyiv's drone campaign, which has increasingly disrupted civilian air travel in Russia, is part of Ukraine's broader strategy to undermine Russia's logistics far beyond the front line.

Russian authorities said the ammonia leak at Ust-Luga was "minor," but the pro-Kremlin Telegram channel, Baza, reported that an unexplained explosion preceded the incident.

The Eco Wizard tanker is believed to be part of Russia's "shadow fleet" — a network of vessels used to bypass international sanctions on Russian oil and chemical exports. Five tankers have been damaged by explosions at Russian ports since the start of 2025.

The Kremlin has not made a formal statement on the minister's dismissal.

Death of top Russian oil executive fuels fresh scrutiny of elite’s ‘window falls’

The unexplained death of a top Russian oil executive on July 4 is fueling renewed scrutiny over the rising number of high-profile Russian officials and businessmen who have died under mysterious circumstances, specifically, have fallen out of windows. Andrei Badalov, vice president of Transneft, Russia’s largest state-controlled pipeline transport company,

The Kyiv IndependentTim Zadorozhnyy

An explosion aboard the Eco Wizard tanker in Russia's Ust-Luga port caused an ammonia leak and is under investigation, the Russian Transportation Ministry announced on July 6.

Explosions have damaged five tankers at Russian ports since the beginning of the year.

The Russian Transportation Ministry alleged that "a minor leak of liquid ammonia" occurred at the Ust-Luga seaport in Leningrad Oblast due to "an incident" while unloading and loading the Eco Wizard tanker.

According to the Russian Telegram news channel Baza, "an explosion of an unknown nature" preceded the leak.

The ship's 23-person crew was evacuated and port emergency services are working on site to eliminate the consequences. Loading operations were stopped and emergency rescue services put on high alert. Russian Transportation Minister Roman Starovoit held a meeting on the incident and a diving inspection of the vessel is planned.

No casualties have been reported.

The Eco Wizard tanker arrived in Ust-Luga from Antwerp, Belgium on July 3, according to ship-tracking data from VesselFinder. The vessel was built in 2024 to transport liquefied petroleum gas (LPG) and flies the flag of the Marshall Islands.

The vessel is suspected to belong to Russia's "shadow fleet," a group of tankers Moscow uses to circumvent sanctions.

A week prior to the Eco Wizard explosion, a blast occurred on the shadow fleet tanker Vilamoura shortly after it visited Russian ports. The ship was carrying 1 million barrels of oil at the time of the explosion.

The Eco Wizard is the sixth tanker linked to Russia to have suffered an explosion since the start of this year.

Ukraine war latest: Drones attack Russia’s Black Sea Fleet; Russian pipelines explode in country’s Far East, HUR says

Key developments on July 5-6: * Drones reportedly attack Russia’s Black Sea fleet * Pipelines supplying Russian military explode in Russia’s Far East, HUR source says * Ukrainian drone strike on Russian airfield hits bomb depot, aircraft * Ukraine hits Russian electronic warfare facility making Shahed, Iskander components, General Staff says * Ukraine’s army chief warns of new Russian offensives in northeast as he visits Kharkiv Oblast front Drones attacked Russia’s Black Sea Fleet at the

The Kyiv IndependentThe Kyiv Independent news desk

Russia is making another attempt to expand its exports of liquefied natural gas (LNG) after U.S. sanctions disrupted production at its flagship Arctic LNG 2 plant, Bloomberg reported on June 28.

Arctic LNG 2, owned by the Russian company Novatek, was envisaged as Russia's largest LNG plant and aimed to produce almost 20 million metric tons of LNG per year. The U.S. State Department targeted the Arctic LNG 2 project with sanctions in 2024.

An LNG vessel has reportedly docked at the Arctic LNG 2 facility for the first time since October, according to ship-tracking data and satellite images analyzed by Bloomberg. Data suggests that at least 13 vessels of Russia's "shadow fleet" have been assembled to potentially serve Arctic LNG 2.

These include four ice-class vessels, including the one currently docked at Arctic LNG 2. Three others are idling in the Barents Sea, along with three traditional LNG vessels. Two more vessels are being repaired in China and another two are idled in the Gulf of Finland. One ship is located near a floating storage facility in Russia's Far East.

While pipeline shipments of Russian gas to Europe have declined sharply since the full-scale invasion of Ukraine, Russia's shadow fleet — a group of aging oil tankers used to circumvent global sanctions — continues to grow.

Moscow now has more vessels at its disposal than it did last year, according to Malte Humpert, founder of the Arctic Institute think tank.

"If (Russia) can find buyers, this small fleet should be sufficient to lift cargoes," Humpert told Bloomberg.

Finding buyers may present a difficulty, due to wariness about sanctions violations. Former U.S. President Joe Biden sanctioned ships and companies connected with exports from Arctic LNG 2 in 2024, thought it is not yet clear if U.S. President Donald Trump will enforce sanctions as strictly.

Representatives of Arctic LNG 2 have continued to search for buyers in China and India, but have not yet made any sales, traders familiar with the matter told Bloomberg.

Arctic LNG 2 cut production from its gas fields to almost zero in November 2024, after halting liquefaction the previous month due to Western sanctions. The U.S. sanctioned two vessels and two entities connected to Arctic LNG 2 in September 2024, after previously targeting the project in a sweeping round of sanctions late August.

The August sanctions likely forced Novatek to scale back its operations at the facility. Novatek itself was sanctioned after the outbreak of the full-scale war in 2022.

Despite escalating war plans, Putin claims Russia will cut military spending starting in 2026

Russian President Vladimir Putin claimed on June 27 that Moscow plans to cut its military expenditure beginning next year, in a rebuke of NATO members’ plans to increase defense spending to 5% of GDP.

The Kyiv IndependentDmytro Basmat

Australia has, for the first time, imposed sanctions on Russia's so-called "shadow fleet" of oil tankers, targeting 60 vessels used to circumvent international sanctions and sustain the Kremlin's war effort in Ukraine, the Australian government said on June 18.

The move aligns Canberra with similar measures introduced by the United Kingdom, Canada, and the European Union.

Australia's Foreign Ministry said the sanctioned vessels operate under "deceptive practices, including flag-hopping, disabling tracking systems and operating with inadequate insurance," enabling illicit Russian oil trade that undermines international sanctions.

"Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine," the ministry said in a statement.

With this move, Australia has now sanctioned more than 1,400 Russian individuals and entities since Moscow's full-scale invasion of Ukraine began in February 2022, the government said.

The step comes amid the continued operation of Russia's shadow fleet. According to a recent study by the Kyiv School of Economics (KSE), Russia currently operates 435 tankers outside the control of Western regulators to evade sanctions such as the G7-EU price cap on Russian oil.

These vessels are typically un- or underinsured and pose a rising environmental risk due to their age and operational opacity.

KSE estimates that as of April 2024, 83% of Russia's crude oil and 46% of its petroleum product exports were shipped using shadow fleet tankers. The study warns that this undermines the effectiveness of Western sanctions and increases the likelihood of maritime disasters, as many of these ships fall outside international safety and insurance standards.

The EU formally adopted its 17th sanctions package against Russia in May, sanctioning nearly 200 vessels tied to the shadow fleet. EU foreign policy chief Kaja Kallas said the new measures also target hybrid threats and human rights violations, with more sanctions under consideration.

Some EU member states and observers have criticized the package for lacking stronger provisions to disrupt Russia's sanction evasion schemes.

Now, the EU seeks to approve its 18th sanctions package, which will add 77 more shadow fleet vessels to comply with the cap to prevent Russia from circumventing sanctions and propose imposing a ban on imports of petroleum products made from Russian oil.

The United States has signaled reluctance to pursue additional sanctions despite Moscow's continued aggression in Ukraine and rejection of ceasefire proposals supported by Western allies.

Putin ‘cannot be trusted’ as mediator, Kallas says, urges EU to tighten Russian oil cap after deadly Kyiv strike

EU High Representative Kaja Kallas urged the European Union to press forward with lowering the oil price cap on Russian crude, even without U.S. support, warning that Middle East tensions could otherwise drive prices up and boost Russia’s revenues.

The Kyiv IndependentAnna Fratsyvir

An uninsured Russian Aframax-class tanker has been illegally conducting ship-to-ship oil transfers in international waters near Greece and Cyprus since July 2024, Ukraine's military intelligence (HUR) reported on June 16.

According to the agency, the vessel, operating without Western insurance, is part of Russia's expanding shadow fleet used to bypass G7 and EU sanctions on Russian oil exports.

HUR said such transfers "pose an environmental threat, allow the aggressor to conceal the origin of oil, evade international control, and ensure its supply to third countries in circumvention of sanctions."

Ukraine has identified the tanker as IMO 9247443 and listed it on the War&Sanctions platform, along with 159 other tankers allegedly belonging to Russia's shadow fleet and 55 captains involved in sanction-busting operations.

Despite price caps and Western restrictions, Russia continues to profit from oil and gas exports, which remain a vital revenue source. According to HUR estimates, roughly one-third of those profits are expected to fund Russia's war against Ukraine in 2025.

In May, the EU approved its 17th sanctions package, targeting nearly 200 shadow fleet vessels. The U.S. Treasury had earlier sanctioned over 180 tankers, which together accounted for nearly half of Russia's offshore oil shipments.

While the Biden administration ramped up pressure on Russia's oil trade early in 2024, U.S. President Donald Trump has since declined to impose new sanctions, despite Moscow's continued refusal to agree to a ceasefire.

EU leaders call for tougher sanctions on Russia at G7 summit

“To achieve peaceful strength we must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table, and to end this war. Sanctions are critical to that end,” European Commission President Ursula von der Leyen said.

The Kyiv IndependentAbbey Fenbert