Russian oil trade: 'Shadow fleet' evading Western sanctions
Out of approximately 600 ships transporting Russian oil, nearly half belong to the so-called "shadow fleet," according to the Finnish portal Yle. The Kremlin predominantly exports this raw material via the Baltic Sea, with several vessels passing through the Gulf of Finland having been registered on the international "blacklist" as ships "for repair" or "for scrap."
3 October 2024 07:39
The Yle portal, citing monitoring of ship movements in the Baltic waters during the first half of 2024, identified over 280 vessels as part of the "shadow fleet." These ships transport Russian oil subjected to Western sanctions and may only possess insurance issued in Russia, or none at all. Most of these are tankers that are 15 years old or more.
"Fifteen years of a ship's operation is the threshold after which the likelihood of technical problems, faults, failures, or accidents increases. In the case of tankers, it depends on the quality of the periodic inspections carried out," the report noted, highlighting that in the event of an accident, given the unclear scope of insurance, obtaining compensation is "doubtful."
Additionally, according to the report, 11 tankers identified in the Gulf of Finland have been listed by the Paris Memorandum Committee on the "blacklist," recognising them as vessels practically unfit for sailing. The Paris MoU is an international agreement among the maritime administrations of European countries, Canada, and Russia regarding a regional system for controlling foreign-flagged ships calling at their ports.
In 2022, one in five tankers transporting oil through the Baltic Sea was classified as part of the "shadow fleet." "In 2024, this is already every other ship," it was noted. The Centre for Research on Energy and Clean Air (CREA) in Helsinki estimated that from the beginning of 2022 to mid-2024, since the start of Russia's aggression in Ukraine, Russia transported nearly 340 million tonnes (approximately 335 million tons) of oil or oil products valued at over 220 billion euros (approximately 196 billion pounds) through the Baltic Sea.
Main Russian oil terminals are located in the eastern part of the Gulf of Finland, in the regions of St. Petersburg, Primorsk, and Ust-Luga.
Russian "shadow tankers," not covered by Western insurance, play a significant role in circumventing the sanctions imposed on the Kremlin by the G7 group. They transport oil to recipients in other countries who are willing to pay Russia more than the set maximum price of 60 dollars per barrel, which constitutes significant support for the Russian war machine in Ukraine.
