Original Coverage & Source Attribution: kyivindependent.com
BRUSSELS, Belgium — When news broke on Oct. 23 that a ship was reportedly carrying a new supply of Russian diesel for U.S. President Donald Trump, one question immediately arose: How, after more than 20 rounds of EU sanctions, could European ships still be involved in facilitating that trade?
Trump’s Oct. 9 deal to buy Russian diesel was part of a wider pivot towards Moscow that was met with widespread condemnation by EU leaders. The deal itself might also be illegal under U.S. sanctions policy.
However, media reports circulated on Oct. 23 that a ship called the Agioi Fanendes, which had just left Russia’s Baltic Sea port of Primorsk, was carrying 40,000 metric tons to New York, and the ship has been traveling through the Baltic Sea westwards ever since.
Adding to the sense of mystery, ship-tracking website MarineTraffic noted that the Agioi Fanendes updated its status on Oct. 23 from heading to New York to, “for orders” — ship-speak for final destination unconfirmed.
That ship is owned by the Greek company Eastern Mediterranean Maritime, owned by billionaire Thanasis Martinos. It is flying under a Maltese flag. Both countries are part of the EU, so the Agioi Fanendes has to comply with the bloc’s 21 sanctions packages imposed on Russia since it launched its full-scale invasion in 2022.
“EU law hasn’t changed,” wrote Ukraine’s sanctions chief Vladyslav Vlasiuk on social media.
“An EU-flagged, EU-managed ship may carry Russian diesel only if it was bought at or below the $100 a barrel price cap,” Vlasiuk said.
That price refers to the G7 oil price cap, agreed in 2022 to reduce the profits Russia can make from the oil trade while still ensuring the world’s energy supply.
A European Commission spokesperson confirmed to the Kyiv Independent Vlasiuk’s interpretation of what is legally possible.
“EU operators are only allowed to provide maritime transport and related services for Russian crude oil and petroleum products if these are sold at or below the relevant price caps,” they said.
And written guidance prepared by the Commission makes explicit that shipowners also bear some responsibility for ensuring their cargo is compliant with sanctions.
“Shipowners should obtain from their customer an attestation in which the customer confirms the Russian oil cargo transported or to be transported has been purchased at or below the price cap.”
When asked to confirm the financial value of Agioi Fanendes’ cargo, a spokesperson for Eastern Mediterranean Maritime instead said “kindly be advised that Agioi Fanendes is proceeding for orders as discharging port is not confirmed yet.”
They had not yet replied to a follow-up question confirming receipt of the EU-required attestation by the time of publication.
To get to the U.S., the Agioi Fanendes will first have to travel through the Baltic Sea, and if it enters the territorial waters of any EU country on the way — 12 miles from their shoreline, they can also intervene to stop the ship.
The Finnish Border Guard told the Kyiv Independent when the ship was just leaving that country’s territorial waters that there was no planned intercept, and no information they could share.
Sweden’s coastguard, which has previously boarded several Russian shadow fleet ships, said “we are monitoring the sea traffic in the Baltic Sea 24/7 and keep an updated and thorough situational awareness.”
However, they declined to comment on specific ships, adding only that they “keep track of all oil transporting ships.”
In the meantime, the Agioi Fanendes has moved via international waters in the center of the Baltic Sea. But in international water, the law of the country whose flag your ship is flying is the one that applies.
“Malta is firmly committed to the rigorous implementation of European Union sanctions and expects full compliance with all applicable restrictive measures,” the country’s sanctions unit told the Kyiv Independent.
“Vessels flying the Maltese flag are likewise required to comply fully with the sanctions applicable to them,” they said.
“We are aware of the reports concerning this particular shipment, and the relevant attestations are being sought from the vessel’s owners and operators,” the Maltese sanctions unit confirmed.
Only when that attestation is provided that the diesel aboard the Agioi Fanendes complies with the G7 price cap can it legally satisfy the U.S.’ thirst for Russian fossil fuels.
With the buyer, seller, and the agreed price of the diesel all unknown, according to the original Reuters article on the Agioi Fanendes, the only possible way to prove that the ship is not in breach of EU sanctions would be for that attestation Malta is waiting for to be provided.
