NewsEU ramps up pressure on Russia's elusive shadow fleet

EU ramps up pressure on Russia's elusive shadow fleet

On Thursday, the European Parliament voted on a resolution urging the Union to enforce more effective sanctions on the Russian "shadow fleet." This term refers to ships that clandestinely transport oil despite the imposed restrictions. The revenue from this oil sale provides Vladimir Putin with funds for the war against Ukraine.

Vladimir Putin needs money from oil trade to be able to wage war in Ukraine.
Vladimir Putin needs money from oil trade to be able to wage war in Ukraine.
Images source: © PAP | VYACHESLAV PROKOFYEV/SPUTNIK/KREMLIN POOL
Jacek Losik

15 November 2024 07:21

Since the onset of Russia's full-scale invasion of Ukraine, the European Union has enforced 14 sanction packages on the Russian Federation. Four of these specifically concerned oil, addressing its purchase, sale, and import by sea. The restrictions also targeted the so-called shadow fleet, which consists of old tankers used by the Kremlin to sidestep sanctions and covertly transport oil.

Despite these sanctions, Russia is estimated to still employ about 160 to 200 ships monthly for oil transport. Furthermore, it is estimated that Russia has invested around £7.5 billion in expanding the "shadow fleet," which currently includes approximately 600 tankers.

At Thursday's plenary session in Brussels, MEPs called for additional EU sanction packages against Russia to more effectively thwart illegal oil trading.

Measures against the "shadow fleet" are to involve imposing restrictions on specific ships, as well as on their owners, operators, managers, accountants, banks, and insurance companies engaged in this practice. As the politicians highlighted, the EU has so far listed only 27 vessels on the sanctions list. By comparison, the UK alone has imposed sanctions on 18 Russian tankers and four LNG carriers.

Dangerous operations of the "shadow fleet" in the Baltic Sea

MEPs also demanded regular penalties for ships that navigate EU waters without valid insurance. Russia's tankers used for oil transport are often so old that they are no longer deemed seaworthy and, therefore, lack standard industry insurance. Their poor condition further heightens the risk of maritime collisions and catastrophic oil spills.

Russian shadow tankers also frequently transfer oil and oil products "hull to hull," in the Mediterranean and Baltic Seas. By avoiding docking in ports, it becomes easier for them to obscure the origin of the oil, but this poses a significant environmental threat.

Therefore, the EP called on the EU to enhance the monitoring of waters, particularly through the use of drones and satellites, and by conducting regular maritime inspections. The European Parliament also appealed to member states to designate ports capable of handling vessels transporting oil and liquefied natural gas (LNG) under sanctions and to confiscate illegal cargo.

Russia sent scrap to the Baltic Sea

These are not the final proposed restrictions. The European Parliament further called on the Union and member states to ban the import of all Russian fossil fuels, including LNG. As politicians argued, so long as the EU continues to import gas or coal from Russia, the sanctions on the Russian Federation and support for Ukraine will be undermined.

The EP also demanded that the EU impose penalties on third countries aiding Russia in circumventing sanctions and urged the G7 countries to more rigorously enforce the price cap imposed on Russian oil, reduce its prices, and eliminate legal loopholes that allow Moscow to repackage and sell oil and oil products at market prices.

According to EP data, the movement of the "shadow fleet" increased greatly in 2024, with the number of trips made by Russian tankers more than doubling. A significant portion of Russian oil is transported along busy international shipping routes and departs from ports in the Baltic and Black Seas.

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