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A Russian-chartered oil tanker in the sea off Morocco in an area identified by maritime technology company Windward as a hub for smuggling oil.

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The U.S. Department of the Treasury’s Office of Foreign Assets Control announced three vessels and shipping companies being sanctioned for violating the Russian oil sanctions on Thursday, only a few days after Treasury began a separate, larger probe of approximately 30 ship management companies covering 100 vessels suspected of violating a price cap on Russian oil.

“Shipping companies and vessels participating in the Russian oil trade while using Price Cap Coalition service providers should fully understand that we will hold them accountable for compliance,” said Deputy Secretary of the Treasury Wally Adeyemo in a statement on Thursday. “We are committed to maintaining market stability in spite of Russia’s war against Ukraine, while cutting into the profits the Kremlin is using to fund its illegal war and remaining unyielding in our pursuit of those facilitating evasion of the price cap.”

But as the Treasury seeks to cut off the Kremlin’s access to oil profits, its hunt for crude tankers and shippers violating OFAC guidelines is revealing complexities in its own guidelines and a murky marine industry.

The shipping entities identified on Thursday were United Arab Emirates-based. The vessels were Kazan Shipping Incorporated’s Kazan, Progress Shipping Company Limited’s Ligovsky Prospect, and Gallion Navigation Incorporated’s NS Century. But while those ships are now UAE-based, Matthew Wright, lead analyst of freight at marine intelligence firm Kpler, tells CNBC the location of where the company is based may be different from the location of the beneficial owner. In this case, Wright says the beneficial owner is likely still Russian-based.

“Based on the history of these fleets, these vessels were all owned and operated by Sovcomflot,” Wright said. “Management of all the Sovcomflot ships was transferred to Sun Ship Management in March/April 2022 when their offices in Europe were closed. Those three companies are now managed by a new manager called Oil Tankers SCF Management but it’s just another name. Ownership hasn’t changed since 2006. They’re not part of either the dark or grey fleet really as I consider them still Russian-owned.” 

30 ship owners targeted in new Treasury probe

This is just one example of the murkiness within the Russian oil trade. The probe against 30 shipowners begun earlier this week reveals how identifying and finding proof of vessels traversing the oceans with sanctioned oil is not as straightforward as suggested by initial headlines covering the Treasury allegations. These companies received warning letters from the government about activity deemed suspicious and requests for documentation. There are grey areas in the U.S. government’s Russian oil guidelines, though the efforts can ultimately lead maritime investigators to the truth.

In the U.S. Treasury’s “Preliminary Guidance on Implementation of a Maritime Services Policy and Related Price Exception for Seaborne Russian Oil,” ship owners are under a Tier 2 category. According to the Treasury, this group within the maritime industry are “actors who are sometimes able to request and receive price information from their customers in the ordinary course of business.”

If a ship owner is unable to obtain such pricing information, according to the Treasury’s guidelines, the Tier 2 actors (ship owners) need to request “customer attestations” where their charter customers pledge in a document they will not purchase seaborn Russian oil above the price cap.

This document could provide a “safe harbor” for ship owners who are relying on that customer’s “attestation” to comply with sanctions. This safe harbor is also extended to the ship insurance companies.

“Ship owners rely on the charterer to provide ample proof that the Russian oil on board the vessel has been sold below the price cap,” said Andy Lipow, president of Lipow Oil Associates. “The sanctions can easily be circumvented if a dishonest charterer presents documents that falsify the true cost of the oil.”

Lipow said one clue to suspicious paperwork is a price of oil that is well below the market, selling Russian crude oil in Asia today at $50 per barrel when Brent is trading at $80.

“That is a red flag,” Lipow said.  

Based on the safe harbor, if the ship owner or management company can be absolved of wrongdoing, the documents can still lead Treasury to the charterer.

The U.S. Treasury told CNBC it does not comment on current investigations.

Tracking Russian oil

A breakout of the Russian oil trade by Kpler shows around 30% of Russian exports from Western ports are still using commercial shipping with beneficial ownership within the European Union.

Wright said this “dark fleet” is comprised of vessels typically 20 years and older which have loaded or predominantly loaded Venezuelan or Iranian cargoes in the last few years.

“There is often some evidence that they have been disguising their activities by turning off their AIS, but not in all cases,” said Wright, referring to the automatic identification system used by marine vessels to track location. “Ownership is often opaque and the operator does not engage in standard commercial shipping outside of operating these vessels.”

There are also “grey fleet” vessels sold since the Russian invasion of Ukraine with the aim of transporting Russian exports and avoiding sanctions. These vessels, according to Wright, have had EU ownership.

“Most vessels have been sold by owners based in Europe to owners who were not previously active in the tanker market,” he said. “The owners are based mainly in Hong Kong, China, India, and the UAE.”

The price cap rules state that exports of Russian crude or refined products on EU-owned, insured, or serviced tonnage must be below the relevant price cap.

Since July, Wright says most exports from Russia are assumed to be above the caps, yet a large number of ships from within the EU continue to trade. This is because of the way Russian crude is traded.

“It is very likely vessels loading Russian cargoes that are EU-owned will have documentation showing a crude trade below the price cap, even if the cargo was actually traded above the price cap,” Wright said. “This is because a charterer or middleman will have traded it at a price that can be shown to the owner as part of a wider trade with the final buyer. The (vessel) owner is unlikely to have any evidence to the contrary.”

Vessel owners do not produce these documents, he said, but are provided with these documents by the charterer.

“The vessel owners are merely the custodians of information provided to them,” Wright said.

Beks Shipmanagement & Trading confirmed to CNBC it is among the companies that received warning letters from the Treasury this week and is sending documents to the government. The company had been identified in earlier press reports, though Treasury declined to specify companies to receive letters.

In an email to CNBC, the company rejected the Treasury’s allegations. “Despite the fact that the U.S. Treasury Department requested voyage details from 30 different ship management including 100 vessels, it is an obvious bad faith and reputation damaging purpose that only our management company was mentioned in the news recently circulated in the media,” a Beks spokesperson wrote.

The company, based in Turkey, announced in October the deployment of SpaceX’s Starlink satellite connectivity system across its fleet of 40 bulkers and tankers for enhanced vessel tracking.

“Our vessels are traded worldwide with their tracking system always switched to the on position. We employ our vessels by abiding (by) all international laws and regulations without breaching any sanction regime,” the company wrote in the email.

Beks said it has been conducting due diligence procedures on all of its voyages as well as carrying out the necessary sanction checks with its London-based lawyers.

According to Kpler, Beks Shipmanagement’s fleet had numerous tanker port calls to Russia since the start of sanctions on February 24, 2022. One example is the oil products tanker Bek Aqua.

Kpler was able to track the travel of the tanker using the tanker’s satellite beacons through the AIS short-range coastal tracking system currently used on ships.

The tanker Beks Aqua arrived at the Russian Port of Nakhodka on Oct 26 and was loaded with either diesel or Naptha on November 1. The vessel then arrived at the Port of Singapore on November 10 and departed empty on November 14.

But following the satellite data doesn’t allow for understanding of contract prices.

“While we can track the vessel’s journey from Russia to Singapore, unless we have the sales contract, we do not know the price the oil product was purchased for,” Lipow said. “The only fact we have is companies like Beks Shipping are employed to move Russian oil. It is possible that someone filed false paperwork with the shipowner. This is why tracking the Russian oil sanctions is not straightforward,” he said.

Beks Shipmanagement said the requested voyage details will be provided to the U.S. Treasury with full transparency.

We're using sanctions to deny Russians the weapons they need, Deputy Treasury Sec. Wally Adeyemo

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E-quipment highlight: Greenworks 60V cordless electric chainsaw

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E-quipment highlight: Greenworks 60V cordless electric chainsaw

Greenworks’ latest 60V cordless chainsaw delivers performance that rivals many gas models, but without the harmful emissions or annoying pull cord. Whether dropping saplings, pruning thick limbs, or clearing up trails after a storm, this battery-powered tool is ready to work.

First released at last year’s CES show in Las Vegas, Greenworks’ 60V li-ion battery packs enough power for 100 clean cuts of the saw’s 16″ blade, and its lightweight, 12.5 lb. frame, tool-less chain tensioner, and automatic oiling system come together for convenient maintenance and easy-to-control power.

When it’s time to get to work, the chainsaw’s brushless electric motor can spin the chain at more than 10,000 rpm with (the company claims) about 20% more torque than a 42cc gas chainsaw for fast, confident cuts through hard woods while keeping noise and vibration to a minimum.

That low-noise and fume-free operation makes Greenworks’ chainsaws an upgrade for both the operator and the neighborhood.

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Greenworks’ 60- and 80-volt batteries aren’t just for chainsaws, either. Greenworks’ batteries can power more than 75 indoor and outdoor products – including hedge trimmers, leaf blowers, even riding lawn mowers, and the STEALTH fat-tire electric mini-motorcycle that made its debut earlier this year.

“Greenworks is proud to offer comprehensive battery-powered solutions for everyone, from homeowners and outdoor enthusiasts to major commercial landscaping contractors,” Klaus Hahn, Greenworks’ President, explained at its launch. “These innovations further our company’s vision of building a more powerful future with clean energy, and they illustrate our tagline ‘Life. Powered. By Greenworks.’”

Greenworks 60V chainsaw specs


  • up to 100 cuts on a single charge with the included 2.5Ah battery on 4×4 wood
  • 20% more torque and faster cutting than a 42cc gas chainsaw
  • no prime, no choke, no pull with no aggravating pull cord
  • 2.0 kW (2.7 hp) max output
  • brushless motor provides more power, longer run-times, and extended life​

The Greenworks 60V 16″ brushless cordless chainsaw, a 2.5Ah battery, and charger are available online for $299.99 – but it’s on sale for “just” $189.99 (or $192.49, with the 18″ arm) on Amazon through September 18th.

If you needed another reason to check it out, the company claims using the electric chainsaw instead of a gas unit saves as much carbon emissions as driving 11,000 miles.

SOURCE | IMAGES: Greenworks, via 9to5Toys.


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107 global partners back XCMG push to electrify the mining industry

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107 global partners back XCMG push to electrify the mining industry

Heavy mineral and metals mining is one of the dirtiest industries on the planet, but Chinese equipment giant XCMG doesn’t think it has to stay that way. To prove it, the company has unveiled a sweeping pledge to electrify and decarbonize mining — and they’re dragging over 100 global partners with them.

Along with with 107 global industry partners from 26 countries, Chinese equipment brand XCMG has issued a Joint Declaration on Global Zero-Carbon Smart Mining, aiming to electrify, automate, and otherwise decarbonize international mining. The pledge addresses 12 key areas including electrification, autonomous operation, net-zero emissions, circular economy, technology sharing, international cooperation, and smarter maintenance strategies.

“As a global leader in zero-carbon smart mining solutions, XCMG is committed to addressing industry bottlenecks through integrating new energy equipment, intelligent control systems and full-lifecycle services,” said Yang Dongsheng, chairman of XCMG Group. “We have resolved the four core challenges of energy infrastructure, new energy equipment portfolios, smart mining management systems and financial support, aiming to help our customers achieving both business growth and environmental wins.”

It’s always great to see efforts like this to decarbonize. But those efforts mean millions of new equipment assets to replace the millions of existing diesel assets deployed currently.

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As luck would have it, XCMG is perfectly positioned to offer those zero-emissions equipment assets. The company says it has, “the complete mining equipment solutions for open-pit and underground mines, as well as its smart construction ecosystem.”

XCMG will sell you the future, today


XCMG & BHP sign global framework agreement on mining equipment supply
XDR80TE-AT autonomous haul truck concept; via XCMG.

Multinational mining companies like Fortescue are saving up to $400 million per year on fuel costs alone with the few assets its electrified (or repowered) already, there are more than environmental reasons to push for a coalition like this — especially if you’re XCMG, whose BYD-developed battery swap technology puts them a step or three ahead of even the excellent equipment options from Volvo CE.

With a strong hand in the autonomous haul truck race and ultra-competitive pricing to back their electric plays, it seems like XCMG is about to get serious as it expands its reach into the Western world. It’s no wonder the legacy brands are running scared and hiding behind the bogus “messy middle” propaganda!

SOURCE | IMAGES: XCMG, via Construction Briefing.


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Europe rebuffs automakers’ pleas to let them lose the EV race to China

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Europe rebuffs automakers' pleas to let them lose the EV race to China

European automakers asked the EU Commission to review and potentially modify the bloc’s 2035 all-EV target at an auto summit on Friday, but the commission is reportedly standing firm despite the industry’s big push this week for more leniency.

In 2021, Europe announced a target to go all-electric by 2035. It was part of a greater package of climate reforms designed to target a 55% reduction in CO2 emissions by 2030 and full climate neutrality by 2050.

But a lot has changed since then. European EV sales and market share have continued to rise, but even more importantly, Chinese EV sales have accelerated rapidly… much faster than those in Europe. In 2020, Europe had 11% plug-in (BEV + PHEV) market share and China was at 5%; but in the interim, China leapfrogged Europe by hitting 47% plug-in share in 2024, while Europe only reached 24%. BEV-only numbers are lower, but BEVs still outsell PHEVs significantly.

This has been accompanied by a significant rise in Chinese EV exports as well. As China’s EV manufacturing effort ramps up rapidly due to forward-looking industrial strategy and encouragement of EV startups, the country has started to produce advanced EVs so cheaply that slow-moving Western automakers are finding it hard to compete (after putting in little effort to do so).

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And so, what are the automakers to do? They’ve already tried nothing, and they’re all out of ideas. So they’re doing what they usually do: going to the teacher to beg for an extension.

Automakers make a final push for leniency on EU emissions

Friday’s auto summit was reportedly the third and last “crisis meeting” between automakers and the EU Commission, timed at the end of the largest European auto show, IAA Munich. Automakers and some governments spent the week agitating for leniency on CO2 targets and to extend the life of the internal combustion engine.

The EU reportedly agreed to an early review of its 2035 targets, but otherwise stood firm, stating that “no matter what, the future of cars is electric.” The reforms included a mechanism by which the EU could review its progress towards its targets, with the review set to happen in 2026, but that review will reportedly now happen this year.

The argument is that automakers don’t have enough time to get up to 100% EV sales by 2035, having only advanced from 11%->24% between 2020 and 2024. But despite automakers’ protestations, China’s move from 5%->47% in the same time frame shows that a lot more is possible than European automakers are letting on.

The review comes after Europe already loosened rules for automakers earlier this year. In March, the Commission gave automakers “breathing room,” slightly extending the deadline for emissions compliance for the 2025-2027 model years (which they now seem on track to meet).

Ironically, this “breathing room” for automakers would result in less “breathing room” for actual humans with lungs, who will have to breathe more pollution as a result of the automakers’ inability to stop poisoning everyone.

Despite that Europe is reportedly standing firm on its targets, it may offer some minor flexibility in its review.

What form the reviewed targets might take is not yet clear. But some automakers and government entities like Germany’s CDU (whose leader, Friedrich Merz, said the auto industry should “not limit itself to a single solution”) are asking for “solutions” that still rely on combustion, and extend the lifespan of polluting, complex and wasteful gasoline engines.

Automakers want clean fuels which… aren’t actually clean

EU President Ursula Von der Leyen reportedly says that the EU will hold firm, but did not rule out potential exceptions for plug-in hybrid vehicles with primarily use electricity but have a combustion engine as a fallback.

However, allowing plug-in hybrids would be folly, given research released just this week from Transport & Environment showing plug-in hybrids emit five times as many emissions on average in the real-world as they do in testing regimes.

Another common request made by automakers has involved “biofuels” or “e-fuels,” clean-sounding names for something that is still inherently wasteful. The EU has already made an exception for these fuels in its 2035 rules.

While synthetic “e-fuels” created from renewable electricity are principally carbon-free and are obviously better than fossil-based fuels, internal combustion engines are still desperately inefficient, with 20-30% efficiency, as compared to ~90% efficiency for electric motors. Putting that electricity directly into a BEV is a far more efficient way to convert electricity to motion than using the electricity to create synthetic fuels, then shipping and inefficiently combusting those fuels.

For biofuels, which are also carbon neutral, the land and water required is an order of magnitude larger than what’s needed for renewable electricity sources used to fuel electric vehicles. In order to fuel all the world’s cars with biofuels, we would need about twice as much land and rainfall as is available on Earth.

And while it’s nice to think that all these combustion engines might suddenly convert to using biofuels, that seems unlikely to happen. So, continuing to build these engines means they will continue to combust things that, mathematically, must remain underground and uncombusted.

Meanwhile, climate change continues to accelerate as human emissions continue to rise. This is the largest and objectively the most important challenge that humanity has ever created for itself, and one that Europe needs to confront boldly.

Finally, one auto CEO speaks the truth

Thankfully, somebody pointed out the ridiculousness of this debate.

Audi CEO Gernot Döllner said this week that the constant bickering and begging by the auto industry is “counterproductive.”

“I don’t know of any better technology than the electric car for advancing CO2 reduction in transportation in the coming years. But even apart from climate protection, the electric car is simply the better technology,” said Döllner, who said that the constant debates over whether inferior combustion engines should be preserved are “counterproductive and unsettle customers.”

Meanwhile, Mercedes CEO Ola Källenius, who also heads the European Automobile Manufacturer’s Association (ACEA), went exactly in the wrong direction with his comments, saying that “hybrids and efficient high-tech combustion engines should remain part of the way forward, otherwise we risk acceptance and jobs.”

The actual reality of the situation is that Europe will lose jobs if it fails on the EV transition… which it already is, and will fail even harder with the complacency that Källenius and Merz have asked for. Doubling down on combustion will result in failure in the face of superior competition from overseas.

At least one CEO, Döllner, actually seems to get it. Although, he did become CEO shortly before Audi tamped down on its EV push, so maybe he needs to listen to his own words.

An unnamed European official, quoted by Euronews, also injected some reality into the situation. After Friday’s talks, the person said “even if the Commission took down these targets, global competition would set them for the industry,” recognizing that superior Chinese EVs are already out-competing European brands and that competition may result in change regardless of any futzing about the automakers beg the EU to do.

A retreat would surrender to Chinese competition

The current situation in Europe involves rising competition from the aforementioned Chinese EV exports. While Chinese share of European EV sales is still rather low at around 11%, that share has been growing rapidly. And it’s growing because, despite the tariff Europe levies on Chinese EVs, these cars still offer quite a good value proposition, and some have better software features than those available from slower-moving traditional automakers.

This is one thing that has European automakers scared about the EV transition. But instead of recognizing that they are behind and need to catch up, they are falling back to the default mode for large businesses – begging government to slow things down so that they can maintain their dominant position. But that hasn’t worked before, and it won’t work now, and thankfully Europe seems not to be taking the bait.

The only way that European automakers can confront the rising challenge from Chinese EVs, and work to solve climate change which their products are the largest single cause of, and which the transportation industry specifically is not doing enough to fix, is by committing more seriously to the EV transition, not by begging the government to let them move more slowly.

Notably, the same sort of begging is not happening in China. When new regulations threatened to destroy the market for ICE cars in China and leave millions of cars unsellable, Chinese auto dealers did ask for a reprieve… but only for six months, in order to sell off existing inventory, while also calling on all levels of industry and government to take the EV transition more seriously, rather than asking anyone to pump the brakes on it.

And none of these Chinese EVs are having any trouble with emissions limits, either. They are not poisoning the lungs (and every other organ) of Europeans – that’s being done by the combustion engine makers.

The only answer is to accelerate, not decelerate

All the above said, Europe’s target probably should be reviewed… because 2035 is not early enough. The faster we work to confront climate change, the better. No matter how expensive it seems it might be to solve the problem that we collectively have spent the last century and a half causing (and have supercharged in the last 30 years), that cost will only get higher as time goes on and as more damage is done.

Many studies have pointed out that the faster we solve this problem, the cheaper it will be to fix, so every moment lost as a result of the auto industry begging for more time only represents more cost, death, and disruption for humanity and for all species on Earth.

Lobbying to slow down the transition therefore does not just harm European industry, but also would harm all life on Earth. And, as Audi’s CEO pointed out, debate over the simple truth of electric drive’s superiority is counterproductive. The European Commission is right to hold firm on its targets, and should rebuff any further pleas to weaken them from the auto industry, the very industry that got itself, and all of us, into this problem in the first place.


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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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