Moscow says it knows where Western ships sail as Putin threatens to seize vessels

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Huileng Tan

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Moscow says it knows where Western commercial ships are sailing, as President Vladimir Putin threatens retaliation if Europe starts seizing Russian vessels.

The warning comes as European countries step up efforts to disrupt Russia's maritime oil trade and its so-called shadow fleet, part of a broader sanctions campaign aimed at squeezing Moscow over its war in Ukraine. In July, the European Union changed its sanctions rules to allow national authorities to sell Russian oil cargoes they have seized and confiscated.

On Wednesday, Putin described such seizures as "piracy and plunder," according to an official transcript from the Kremlin.

"If this happens, we will have to reciprocate — not necessarily in the waters where they plan to raid our own ships but anywhere we consider necessary or reasonable, including in the Pacific Fleet's area of responsibility," he said.

Pacific Fleet Commander Viktor Liina told Putin that Russia had conducted a "detailed analysis" of maritime traffic in the Asia-Pacific.

"We know the routes, what they are carrying, and whose ships they are," Liina said.

The threats come as European authorities step up action at sea.

In June, British forces boarded "Smyrtos," a sanctioned tanker the UK says belongs to Russia's shadow fleet. The vessel was subsequently held off England's south coast.

An EU naval mission has also boarded sanctioned tankers. On August 2, Italian forces operating under the EU's Operation Irini boarded "Toa Payoh," a sanctioned shadow-fleet tanker, in international waters to verify its nationality. It was the mission's second such operation in less than two weeks.

Oil and gas remain critical sources of revenue for Moscow, and Western governments have sought to squeeze those revenues through sanctions targeting Russia's energy trade and the ships used to transport its oil.

Russia's economy, meanwhile, is showing signs of strain. GDP grew 1.3% in the second quarter from a year earlier, according to Russia's Federal Statistics Service, reversing a 0.2% year-over-year decline in the first quarter.

Growth has slowed sharply from recent years, while borrowing costs remain high. The Bank of Russia's key interest rate stood at 14% in July.

Ukraine has also intensified attacks on Russia's energy infrastructure, striking refineries and other oil facilities in an effort to disrupt a major source of revenue for Moscow.

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Huileng Tan

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Huileng Tan is a senior reporter based in Singapore, covering markets, the global economy, commodities, and investing. Her reporting focuses on how shifts in money, demographics, technology, and policy are reshaping businesses, wealth, and everyday life around the world.Since joining Business Insider in 2021, she has covered everything from commodity booms and investor trends to China's economy, the AI trade, and the forces driving global markets.Before joining Business Insider, she reported for CNBC, Dow Jones, ICIS, and The Wall Street Journal.In 2018 and 2019, she won the Singapore Exchange Orb Awards for Story of the Year – Derivatives for her reporting on the global commodities and derivatives markets.Reach her at [email protected].