Weapons legally exported from the United Kingdom are being used to guard Russian oil tankers, and the British authorities are unable to do anything about it.
Source: Bloomberg
Details: In July 2023, the UK revoked the licences of MNG Maritime, a company operating three arsenal ships: Genesis, Antarctic Dream, and Siam, due to its provision of armed guards for the sanctioned fleet of Russian oil tankers.
Following the revocation, the weapons (totalling hundreds of units) were meant to be returned. However, this did not happen, as MNG Maritime was swiftly acquired by the Singaporean company Sinbad Navigation.
Due to the change in ownership and jurisdiction, the UK has been unable to pinpoint the exact location of the weapons and has lost the legal right to seize them.
Meanwhile, Sinbad Navigation has been actively collaborating with Russian tankers, providing security services for Sovcomflot, a Russian state-owned shipping company.
Sinbad Navigation is not subject to sanctions, and the services it provides do not technically breach any sanctions. However, the company has become an essential player in enabling Russia to sustain its oil trade despite these restrictions.
Around 20 years ago, due to a surge in piracy off the coast of Somalia, the presence of armed guards became a mandatory condition for insuring cargo vessels. Although piracy incidents have significantly decreased (from 400 in 2010 to 60 in 2023), a new threat has emerged in the form of attacks by Yemeni Houthis.
Shipping companies rely on specialist security firms that store weapons on arsenal ships. Typically, three or four armed guards board a tanker and, after navigating through high-risk areas, return to their vessel via inflatable boats. The cost of such a service exceeds US$4,000 each way.
Support UP or become our patron!
