EU and G7 Consider Full Marine Ban to Cripple Russia’s Oil Revenues: Report

The world’s richest democracies are reportedly considering their most far-reaching move yet against Russia’s energy trade. According to six sources cited by Reuters, the G7 nations and the European Union are in discussions over a complete Ban on marine services for Russian crude — a step that would block Western-owned ships and insurers from facilitating a large share of Russia’s global oil shipments.

The proposed move would dismantle the current price-cap mechanism and directly target Russia’s lucrative maritime exports, many of which still rely on ships owned or insured by Western companies, including those based in eu shipping hubs such as Greece, Cyprus and Malta.

More than one-third of Russia’s oil exports are transported using Western vessels and services, with shipments routed primarily to India and china. Cutting off this access would force Moscow to increasingly depend on its ageing “shadow fleet” — a vast, opaque network of hundreds of tankers used to bypass sanctions.

Ban Under Review for Next EU Sanctions Package

Three sources told Reuters that the measure is being evaluated for inclusion in the EU’s next sanctions package, expected in early 2026. Before formal adoption, Brussels plans to align the proposal with a broader G7 consensus.

Technical discussions are being led by officials from the UK and the US, though Washington’s final stance will depend heavily on the approach taken by President Donald Trump’s administration as it navigates ongoing Russia-Ukraine peace negotiations, four people familiar with the talks said.

If implemented, the combined EU-G7 ban would come closest to a near-total boycott of Russian Oil since the start of the Ukraine invasion in 2022.

Russia Expands Shadow Fleet as Pressure Builds

To circumvent the price cap, Moscow has already rerouted much of its crude to Asian markets using its own tankers — many of which operate without Western insurance and under loose regulatory conditions. These ships often have murky ownership structures and weak safety standards.

The Biden administration had long argued that forcing Russia to invest billions in new ships would drain its wartime finances. But the Trump administration has shown significantly less support for the price-cap regime and declined to endorse Canada, the UK and the EU’s move to lower the cap from USD 60 to USD 47.60 per barrel earlier in 2025.

Data from the Centre for Research on Energy and Clean Air shows that in October, Russia exported 44% of its oil on sanctioned shadow-fleet tankers, 18% on non-sanctioned shadow vessels, and 38% on ships linked to companies from the G7, EU and Australia. According to Lloyd’s List Intelligence, the sanctioned fleet now includes 1,423 tankers transporting restricted oil from Russia, Iran and Venezuela.

Western governments say their goal is to reduce the Kremlin’s wartime revenues without destabilising global energy markets. A full marine-services ban would severely restrict Russia’s access to Western shipping infrastructure, forcing Moscow to either dramatically expand its costly shadow fleet or accept reduced export volumes.

Governments in Washington, London, Brussels and Ottawa did not respond to Reuters’ requests for comment.