- Western shipowners have sold over 230 tankers to Russia’s shadow fleet, aiding oil sanctions evasion and war funding.
- Greek, UK, German, and Norwegian companies made over $6bn by selling old tankers to non-sanctioned countries.
- Despite new EU regulations, ships continue to enter the shadow fleet, raising security and environmental concerns.
An international investigation has uncovered that European and US shipowners have sold at least 230 aging tankers into Russia’s shadow fleet, allowing Moscow to evade Western oil sanctions and continue funding its war against Ukraine, reports The Guardian.
How Western Ships Help Russia Evade Sanctions
The ships, often registered in non-sanctioned countries like India, Hong Kong, Vietnam, and Seychelles, have generated over $6bn for their previous owners since Russia’s invasion in 2022.
The report highlights the ongoing loopholes in enforcement and the role of the global shipping industry in enabling sanctions violations.
European Shipowners Profit While Aiding Russia’s Oil Trade
The investigation, led by Dutch outlet Follow the Money, revealed that Greek shipowners sold 127 vessels, while UK, German, and Norwegian companies also contributed. Many of these old tankers would have been scrapped, but Western sanctions increased demand, leading to higher resale values.
“A lot of European shipowners had old tonnage that they thought wasn’t worth much. All of a sudden it doubled in value – so they scrambled to sell it.”
— Analyst at Lloyd’s List
Shadow Fleet: A Key Player in Russia’s Oil Exports
The 600-ship shadow fleet now transports 70% of Russia’s oil exports, according to the Kyiv School of Economics (KSE). These ships avoid sanctions by reflagging under non-Western jurisdictions and engaging in secretive shipping routes.
A case study revealed two Greek-owned tankers sold to a Hanoi-based company, later renamed and reflagged to Panama, which carried 120 million liters of Russian oil from Ust-Luga, near Estonia.
EU and US Tighten Regulations, but Loopholes Persist
In late 2023, the EU introduced rules requiring companies to verify that vessel sales do not contribute to sanctions evasion.
However, 32 tankers have entered the shadow fleet since the regulation took effect. According to Western intelligence sources, some tankers are even involved in espionage and sabotage of undersea infrastructure.
Environmental Risks and Safety Concerns
Many shadow fleet tankers operate without Western insurance, making them hard to track and regulate.
The EU and US have responded by banning specific ships from ports and sanctioning around 70 vessels, with 74 more expected to follow. Officials warn that many of these tankers are old and poorly maintained, posing serious environmental risks.
“Individual tankers are now barred from EU ports and services if found to be transporting Russian oil or involved in ‘dangerous shipping practices’.”
Resistance from Powerful Shipping Nations
Despite growing concerns, the EU has not outlawed the sale of vessels to the shadow fleet, largely due to resistance from Greece, Cyprus, and Malta—countries with large shipping industries.
As a result, many sanctions loopholes remain open, allowing Moscow to continue exporting oil and funding its war efforts.
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Source: The Guardian
