Analysts fear Russian President Vladimir Putin’s move to call up army reservists is an overall negative for a recovering tanker sector.

Fearnley Securities said in a note to clients that the decision to mobilise 300,000 extra men for the Ukraine war will spur tighter Western sanctions, despite the likely economic hit to those imposing the financial restrictions.

“This could be negative for overall tanker demand as it’s less likely Russia will be able to sell all its oil, even to China and India,” analysts Oystein Vaagen, Erik Gabriel Hovi and Ulrik Mannhart said.