UK planning to auction oil from detained Russian “shadow fleet” tanker Smyrtos to benefit Ukraine

British authorities are planning to hold an auction to sell oil from the tanker Smyrtos (IMO: 9389100), which was detained in the English Channel in mid-June, according to a report by The Telegraph. The proceeds could be used to support Ukraine.

The tanker is currently anchored off the coast of Weymouth, a town in southwest England. After the investigation is completed, the vessel is likely to be released and could return to Russia, the newspaper’s sources said.

Officials, however, believe the 98,000 metric tons of Urals crude on board now legally belong to the UK. The British government can dispose of the cargo, including by selling it. The market value of that volume of Urals crude is estimated at 35 million pounds, or about 40 million euros.

Potential plans to sell the cargo are still in an early stage of discussion, but those talks already envision using the proceeds to provide financial support to Kyiv. The money could be transferred directly to Ukraine or used to finance defense companies.

Another option is for the oil to be refined in the UK and used to generate electricity for homes across the country. The legal details of the matter remain unclear, including how fuel held as state property would be transferred to an energy company.

On June 14, Smyrtos became the first “shadow fleet” tanker to be detained by the UK in the English Channel. Its captain has been charged with sanctions evasion and remains in custody. The next court hearing is scheduled for July 16.