Where does seized Russian oil go?

Despite Western restrictions, Russian oil continues to reach buyers. In June 2026, the country's seaborne crude oil exports hit a record 4.13 million barrels per day. According to a recent report, nearly half of these exports may have been transported by tankers subject to sanctions. The G7 imposed a price cap on Russian oil in 2022 as part of the measures introduced in response to Russia’s full-scale invasion of Ukraine. To circumvent the cap, and sell crude oil at higher prices, Russia relies on a clandestine “shadow” fleet that could consist of more than 1,000 (ageing, second-hand) vessels sailing under various flags. These ships operate around the world, including in European territorial waters. Hundreds of them have been blacklisted for helping Moscow escape Western restrictions. Since the beginning of 2026, European countries have seized nine of these vessels. The growing number of seizures was raising a practical question for authorities: what should be done with the confiscated cargo? The answer came in July. In its 21st wave of sanctions, the EU introduced a mechanism allowing member states to store, transfer or sell Russian oil or petroleum products that have been lawfully seized or confiscated. The regulation does not specify how the proceeds from such sales should be used, leaving this to national law. It does, however, require that the proceeds not benefit the Russian state, Russian citizens or Russian entities. The value of the cargo can reach millions of euros. In June, France intercepted a Cameroonian-flagged tanker, linked to Russia, carrying oil worth about €42 million. In March, Belgium detained another “shadow” Guinean-flagged tanker with oil worth approximately €23 million. Some countries are already taking action. British forces detained the Smyrtos tanker in the English Channel last June. The UK considers that the oil on board could legally become UK property, potentially allowing it to sell the 98,000 tonnes of Urals crude, valued at around €41 million. The funds raised could be sent to Ukraine or used to purchase weapons and equipment for the front line, The Telegraph reported. In August, Vladimir Putin described the EU’s measures as “piracy” and “robbery”, adding that if the measures were implemented, Russia would “be forced to respond in kind”. However, the EU rules do not give member states new powers to officially seize Russian oil. Instead, they set out what authorities can do with the oil that has already been lawfully seized. So far, no EU country has officially sold seized Russian oil. Even if this became more common, it would have little impact on the overall volume of Russian oil exports, because these detentions represent only a small fraction of total tanker traffic. A more immediate consequence would be more complicated logistics for transporting the oil. Shadow fleet vessels would need to take longer routes to avoid detention in EU and UK waters, while insurance and cargo delivery costs could increase significantly, as even experts close to the regime acknowledge.