US and allies pressure Liberia, Marshall Islands, and Panama to enforce Russian oil sanctions

The United States and its allies have adopted a strategy to exert pressure on Liberia, the Marshall Islands, and Panama as part of their latest efforts to target Russian oil exports. These countries' flags have been utilized by oil companies for transporting Russian oil at prices exceeding the $60 per barrel cap set by the West. In response, Western authorities have urged these nations to intervene in such practices. Changing flags on ships, a loophole exploited by front companies for shipping Russian oil and thus evading sanctions, has been met with relative indifference by Liberia, the Marshall Islands, and Panama. It is estimated that around 40% of the 535 tankers involved in these covert operations are registered in the Marshall Islands. The Western governments have warned these countries that the vessels involved in flag switching lack Western insurance, posing significant risks for any engagements with them. Panama is anticipated to align with the US's requests and hinder these activities. Conversely, Liberia and the Marshall Islands have opted to issue warnings to traders against using their flags for unlawful activities, rather than taking direct action. Previously, Western nations imposed a price ceiling on maritime shipments of Russian oil approximately a year ago. Despite early violations of this cap, enforcing authorities initially hesitated to implement substantial punitive measures. However, since mid-November, the US has escalated its efforts. As a result, six tankers under the Liberian flag have been blacklisted for their involvement in transporting Russian oil. This move prompted three major Greek shipping companies to discontinue their oil transport operations from Russia.