Japan Imposes Its First Direct Sanctions on Vessels in Russia's Shadow Fleet

Japan directly sanctioned individual vessels for the first time, targeting 35 ships linked to Russia's so-called shadow fleet. The measure seeks to restrict Moscow's oil export network and took effect on October 2 under Japan's Foreign Exchange and Foreign Trade Act.

Starting from the effective date, Japanese companies require government authorization to provide specific services to these 35 vessels, including repairs and insurance, as well as to carry out capital transactions related to their sale, purchase, leasing or chartering, such as loans and debt guarantees. The Ministry of Foreign Affairs identified each vessel by its IMO number, and a limited transition period was established for contracts signed before October 2, provided that obligations or services are completed before November 1.

With this decision, Tokyo moves closer to the vessel-focused sanctions model already adopted by the United Kingdom and the European Union against tankers operating outside Western shipping, financing and insurance channels. The sanctions on the vessels were part of a broader package that also froze the assets of 33 Russian organizations and nine individuals, and imposed export restrictions against four entities in Turkey and the United Arab Emirates.

According to Lloyd's List, the measures target tankers linked to ownership networks based in Oman, and Tokyo maintained exemptions to protect energy supply from Sakhalin, in what it describes as a cautious but significant shift toward the sanctions model used by Europe and the United Kingdom.

The measure comes amid a context in which a growing proportion of sanctioned vessels are moving to the Russian registry. An investigation cited by Splash 247 found that 107 vessels joined the Russian registry between January 2025 and June of this year, of which 87% were already sanctioned at the time of the flag change. Seventy-two of these vessels subsequently carried an estimated 7.5 billion euros (8.8 billion dollars) worth of Russian fossil fuels, while Clarksons data showed that the Russian registry grew by 38.2% so far this year through September 1.

Trade News framed Japan's decision as a show of solidarity with Ukraine, noting that Japan sanctioned vessels trading with Russia for the first time in its history.