U.S. and Europe Weighing Action on Russian Ships and Yachts

(Bloomberg) -- The U.S. and the European Union are looking at ways to limit access to their ports and waters for Russian vessels, as well as measures targeting oligarchs' yachts, according to people familiar with the matter.

The EU and its allies have also discussed the possibility of sanctioning Russian maritime ports and an Italian idea to create a public registry of oligarchs, according to people familiar with the plans, who asked not to be identified because the discussions are private.

The EU's trade chief, Valdis Dombrovskis, told European lawmakers on Monday that there was “some work ongoing” to explore sanctions on Russia's maritime sector, without giving any details as these measures are not part of his dossier.

The U.K. banned Russian ships from its ports this week in a move that includes any vessels owned or operated by anyone connected to Russia. U.K. authorities will also gain new powers to detain Russian vessels, the government said in a statement announcing the measures.

Major container lines have already said they will curtail operations to Russia. Shipping giants A.P Moller-Maersk A/S and MSC Mediterranean Shipping Co. on Monday said they're halting trade in the region, joining Hapag-Lloyd AG and Asia's Ocean Network Express Pte in stopping services.

The Biden administration has been talking regularly with the EU and the U.K. to iron out the details of the potential measures, one of the people said.

The measures are also seen as part of broader efforts to more effectively target Russian oligarchs, with both the U.S. and the EU setting up task forces to untangle and better identify assets.

Italian Prime Minister Mario Draghi proposed this week the creation of a public international register listing oligarchs with wealth above 10 million euros. One person said U.S. and Italian officials have been discussing the idea, and it could happen.

Malta, where a number of oligarchs' yachts are reportedly registered, announced on Wednesday that it was suspending Russians and Belarusians from applying to its investments-for-citizenship scheme.

The EU adopted sanctions against some of Russia's wealthiest tycoons this week -- metals tycoon Alisher Usmanov, Alfa Group owners Mikhail Fridman and Petr Aven, plus Alexei Mordashov, who controls a major steel company -- and is already at work to expand that list, according to people familiar.

The Biden administration is also working on sanctioning further individuals, one of the people said. The Justice Department announced Wednesday details of a new inter-agency task force designed to enforce sanctions and export restrictions and to seize luxury assets belonging to Russia's wealthiest citizens as the U.S. and its allies step up pressure over the invasion of Ukraine.

The “KleptoCapture” task force will gather experts in sanctions and export control enforcement, anti-corruption, asset forfeiture, anti-money laundering, tax enforcement, national security investigations, and foreign evidence collection.

Meanwhile, in London Prime Boris Johnson has been accused by members of parliament of being slow to act against wealthy Russians as his government lagged behind the EU and the U.S.

As allies prepare a next round of potential sanctions, the U.K. and others, including Poland, have urged for measures targeting Russia's energy exports, the people said -- A move that most have so far resisted.