UK considers selling oil from seized Russian tankers to offset costs

Britain is planning to sell oil taken from seized, sanctioned tankers as part of a wider effort to disrupt Russia’s so-called shadow fleet and offset the high costs of impounding vessels, according to defence sources.

The proposal is being explored by the team of defence secretary John Healey amid growing concern over the financial burden of holding oil tankers for extended periods. Defence officials told The Sunday Times that detaining a single vessel can cost millions of pounds, and the seizure of multiple ships could leave UK taxpayers facing a substantial bill. Selling the oil cargoes carried by sanctioned vessels is seen as one way to recover some of those costs.

The UK has already stepped up enforcement. On January 22, Britain assisted France in seizing a second tanker, the Grinch, in the Mediterranean. Healey has said he is working closely with allies to increase the number of seizures, and media reports have suggested that the Royal Navy’s elite Special Boat Service could be deployed as part of future operations.

Officials note that enforcement is complicated not only by cost but also by the need for coordination across government. While the Ministry of Defence plays a central role in monitoring and interception, the Department for Transport is ultimately responsible for holding seized vessels, requiring a cross-government plan before action can be taken.

Under proposed plans, the UK would establish a shadow fleet command centre to monitor and gather intelligence on sanctioned vessels and, where legally possible, intercept them. HMS Calliope, a naval reserve training centre in Gateshead, could be converted into a base for remotely operated, uncrewed surface vessels. These boats—similar to seven-metre “Rattler” craft recently tested off the Scottish coast while being piloted from around 800 kilometres away—would be deployed to shadow suspected Russian tankers in the North Sea and the English Channel.

Equipped with surveillance technology, the uncrewed vessels would help identify ships operating under false flags or names and provide detailed tracking data. Officials say the aim is to gather sufficient evidence by the time a tanker reaches the Channel to determine whether it can be legally seized.

An MoD spokesman said: “Deterring, disrupting, and degrading the Russian shadow fleet is a priority for this government. To date, we have imposed sanctions on over 500 Russia-related shadow fleet oil tankers and 16 liquefied natural gas tankers, and Russia’s critical oil revenues are down 27 per cent compared with October 2024 — the lowest since the start of its full-scale invasion of Ukraine.”

By Sabina Mammadli