The term "shadow fleet" refers to the ships used for smuggling, with which Russia circumvents Western sanctions. This fleet consists mainly of old oil tankers that are no longer technically maintained, have an unclear owner, and the risks arising from them are not insured, writes ARD.
The German public-law media explains that the sanctions mainly prohibit Western companies from providing Russian oil exporters with ships, financing and insurance services unless the oil is sold at a significant discount compared to market prices. There are also bans on visiting Western ports, which increasingly affect identified black tankers. The sanctions are aimed at minimizing the Kremlin's oil export revenues without unduly affecting international oil supplies.
How big is Russia's "shadow fleet"?
The fleet is believed to include more than 400 ships, ARD reported. British insurance company Lloyd's estimates the number at up to 460, or 10-15 percent of the world's tanker fleet. However, the ships used are often changed, which makes it difficult to make a more accurate assessment.
As the “Financial Times” writes, Russian oil companies use individual front persons who, with Russian money and through a network of offshore companies, acquire obsolete tankers around the world in order to operate them through other covert companies, for example those in Dubai.
What is the significance of these tankers for Russia?
According to estimates by the Kiev School of Economics, Russia has so far invested up to ten billion dollars in building a “shadow fleet”. In June 2024, 4.1 million barrels (about 650 million liters) of oil were transported in this way daily. This corresponds to 70 percent of Russia's oil exports by sea.
The largest part of the deliveries are to China and India. A Ukrainian think tank estimates Russia's total oil export revenue in 2024 at $193 billion, ARD notes.
Which sanctions are directly aimed at the "shadow fleet"?
In the summer of 2024, EU countries began to sanction individual tankers that do not fly the Russian flag but are part of the "shadow fleet". This means that they are not allowed to enter Community ports and are not allowed to receive services from EU companies.
So far, Brussels has sanctioned 80 ships, the UK 50, and the US has included 183 vessels on the sanctions list, the German public-law media outlet reports. She added that further sanctions are being prepared jointly with the G7 countries.
Directly sanctioning individual ships has been considered particularly effective. China recently denied access to the port of Shandong to ships sanctioned by the US. But identifying the real owners and guarantors remains difficult for the authorities, and Russia seems to frequently change the vessels used. All this turns the fight against the "shadow fleet" into a game of cat and mouse, writes ARD.
What incidents have there been so far?
Experts warn of the high environmental risk arising from poorly maintained ships that are not sufficiently insured. The average age of tankers is 18 years, according to the Kiev School of Economics. Given the regulatory loopholes and the growing importance of black tankers in the Russian oil trade, a major natural disaster is only a matter of time, the Ukrainian institute warns.
So far, numerous incidents have been recorded with tankers that could only be identified as part of the "shadow fleet". In most cases, these are mechanical failures, such as with the UAE-registered "Canis Power" off the Danish coast in May 2023.
The most recent incidents were with the oil tankers "Eventin" and "Eagle S" in the Baltic Sea, both of which were attributed to the "shadow fleet". The Panamanian-flagged "Eventin" ran aground on Friday near the island of Rügen and no longer poses a threat, ARD reports.
However, the case of the Cook Islands-flagged "Eagle S" is much more serious - it is believed that its anchor damaged a power line running between Finland and Estonia, as well as four communication cables. This could be an indication that the Kremlin is ready to use the fleet as a weapon in its hybrid war against the West.