Denmark May Restrict Market Access for Tankers with Russian Oil

The European Union is considering entrusting Denmark with inspecting and potentially blocking tankers carrying Russian oil passing through its territorial waters. This development comes against the backdrop of Western attempts to set a "price ceiling" for Russia, which the country has sought to evade, as reported by The Financial Times. 

According to sources familiar with the negotiations in Brussels, Denmark will inspect tankers passing through its waters without Western insurance, in accordance with laws allowing states to inspect vessels deemed environmentally threatening.

According to these sources, the key aspect is ensuring compliance with insurance rules, given that a significant amount of Russian oil is transported by the so-called "shadow fleet" of old vessels at a higher risk of breakdowns or oil spills, posing a serious ecological threat. EU representatives argue that the requirement for proper insurance from reputable companies is justified, considering that many shipments of Russian oil are conducted by vessels suspected of using falsified financial reports or insurance from non-Western companies.

The plan envisions daily inspections depending on the ability of Denmark's military-naval forces to stop and inspect tankers, raising questions about Copenhagen's actions if a vessel refuses to stop. The majority of Russian oil transported through the Baltic Sea, approximately 60% of oil exports by sea, crosses narrow Danish straits on its way to international markets.

This initiative comes after Western countries acknowledged that "virtually none" of Russia's oil exports fell below the $60 per barrel "price ceiling" last month, 11 months after the G7 imposed these measures in response to Russia's full-scale invasion of Ukraine.

The EU is also considering other measures within a new sanctions package, to be officially discussed by member countries this week. These measures include sanctions against shipping companies selling their old vessels to the "shadow fleet" of Russia and against countries allowing these vessels to sail under their national flag.