Clandestine oil trade in Aegean Sea raises EU alarm
The areas around the Greek islands of Lesbos and Chios in the Aegean Sea have recently become a hotspot for the clandestine transfer of Russian oil, reports Bloomberg. According to analysts at Vortexa, approximately 160,000 cubic metres of oil, heating oil, and other petroleum products are being transferred there each month.
Previously, Russian tankers were primarily conducting these transfers near the Laconian Gulf, south of Greece. They relocated in May when the Greek navy commenced manoeuvres to hinder these activities.
Transfers are still occurring near the Gulf but on a much smaller scale. In November, Greece announced an extension of these actions until mid-March.
According to Bloomberg, the vicinity of the Greek islands of Lesbos and Chios in the Aegean Sea is now the focal point for clandestine transfers of Russian oil. Approximately 160,000 cubic metres of oil, heating oil, and other petroleum products are being transferred monthly, according to Vortexa analysts' estimates.
Russia is employing maritime transfers of raw materials to evade sanctions imposed after it invades Ukraine.
Bloomberg highlights that the increase in cases of Russian oil and fuel transfers between ships is causing concern. There are worries about environmental impact, safety issues, and the vessels' insurance.
Millions of barrels of fuel from Russia likely reached the EU
The Politico portal reported that at the beginning of November, the European Anti-Fraud Office (OLAF) launched an investigation into a loophole enabling countries like Turkey to export sanctioned Russian oil to the EU.
It was uncovered that millions of barrels of fuel from Russia likely reached the EU after being rebranded in Turkey, despite the ban on such imports. This served as a method to circumvent EU sanctions, which allow for "mixing" different types of fuel if labelled as non-Russian.
These activities were anticipated to generate Russia up to 3 billion euros in profits from exports from three Turkish ports over the 12 months following the EU's imposition of sanctions on Russian oil imports in February 2023.
"The practice showcases the creative ways in which Russia circumvents EU sanctions and protects its fossil fuel trade, which makes up almost half of the Kremlin’s revenues," notes Politico.
See also
Turkey "quietly" increased fuel imports from Russia
Before Russia invaded Ukraine, the EU met one-quarter of its oil needs and 40 per cent of its diesel needs through Russian imports. However, this drastically changed when the EU agreed to a complete ban on imports of both products in 2022. Around that time, Turkey began "quietly" increasing its fuel imports from Russia and boosting its fuel exports to the EU.
After Moscow launched its full-scale war against Ukraine in February 2022, India and China emerged as the main markets for Russian resources, mainly sanctioned by the EU and the US. These sanctions were intended to cut off funding for Russia's war efforts. Despite pressure from the US and Europe, China and India have refused to adhere to Western sanctions on Russian imports.
These countries are also abstaining from condemning the Russian invasion and directly attributing blame to Russia for what Moscow terms a special military operation.
