Finance:Russian shadow fleet

From HandWiki
Short description: Russian vessels evading sanctions

Template:Protection padlock The Russian shadow fleet is a fleet of hundreds of vessels operated by Russia to evade policing following the enaction of the 2022 Russian crude oil price cap sanctions enacted by the United States, United Kingdom, and European Union in response to Russian invasion of Ukraine.

Background

Shadow or grey or dark fleets already existed, used by Iran and Venezuela to try to get around international sanctions. Russia was aware that any sanctions against their country would result in a need to control tankers to export crude and processed oil. Tankers approaching their end of life span were purchased by Russia, Russian oil companies or opportunists who could then rent them out for a large fee to maintain the flow of oil exports. The price of old tankers rose, with vendors making large profits from their sales.[1] By the end of 2022 there were over 600 ships in the shadow fleet, 400 of which were crude oil tankers. Since then the numbers have increased with estimates of 1,100 to 1,400 ships by December 2023.[2] Only 118 of them have been sanctioned by the United States, European Union, or United Kingdom with only three sanctioned by all three according to the Kyiv School of Economics.[3]

A major problem with the Russian shadow fleet is insurance; Western countries have minimum criteria for insurance, which includes verification of the condition of the ship.[4][5] Two thirds of ships carrying Russian oil have "unknown" insurers. The ships are generally old and more prone to breakdown or leakage.[6] in January 2024 the 18 year old sanctioned Peria had an anchor malfunction, leaving the ship stranded in the Bosphorus, closing all traffic.[7] Shadow ship owners disguise the true owners and do not feel obliged to maintain the ships to a high standard. Turning off automatic identification systems and undertaking open sea ship to ship transfers of oil increase risks of collisions and spillages.[2]

Certain flags of convenience are favored. Gabon has more than doubled its ships registry in 2023 with an estimated 98% of tankers considered high risk with no identifiable owner. The number of incidents affecting these tankers has increased to around two a month, with groundings, collisions, fire and engine failures, recovering the cost of rescuing these ships is doubtful due to the unknown owner and the unknown insurance, if any.[2]

Maritime incidents

Multiple vessels which had recently called at Russian ports have been attacked with limpet mines or underwater explosives in the Mediterranean, many operated by Athens-based shipping company Thenamaris.[8][9][10]

A report from the security company Ambrey concludes that the attacks were perpetrated by "an unnamed state actor targeting ships calling at oil ports" likely using limpet mines with delay action planted by divers using small submarines. Two vessels were sunk, the 9500 ton freighter Ursa Major off Spain on 24 December 2024 and the 164000 ton super tanker Koala while moored at Ust-Luga, Leningrad Oblast,[11] on 9 February 2025[12] and three others, Seajewel, Seacharm and Grace Ferrum were damaged.[11]

On 11 April 2025, the Estonian Navy minehunter EML Admiral Cowan seized a flagless tanker pretending to be registered in Djibouti, the Kiwala, in the Baltic Sea. The vessel had been sanctioned by the EU and the UK, and was on its way to load oil in Ust-Luga.[13][14][15] The Kiwala was released on 28 April.[16]

On 13 May 2025, the Estonian Navy's patrol vessel EML Raju escorted the Gabonese-flagged tanker Jaguar out of Estonia's territorial waters, supported by AugustaWestland AW139 helicopters, M-28 Skytruck aircraft[17] and a Polish MiG 29.[16] A Russian Sukhoi Su-35 fighter violated Estonia´s airspace the same day. Portuguese F-16s from NATO's Baltic Air Policing Mission responded to the incident with a reconnaissance flight.[18]

On 21 May 2025, a shadow fleet tanker, the Sun, waving the Antiguay Barbuda flag, was spotted sailing around an undersea 600-megawatt power line linking Sweden and Poland. The vessel was scared off by a Polish aerial patrol, and later the area was sweeped by the Polish research ship ORP Heweliusz.[19]

Sanctioning vessels and associated companies for breaches

Vessels, their owners and associated companies involved in breaches of the sanctions are from autumn 2023 being investigated and sanctioned. On 10 January 2025, the U.S. Dept of the Treasury added about 180 vessels, scores of traders, major oil companies and senior Russian oil executives to the sanctioned list.[20][21]

Crude oil tankers and owners sanctioned for breaches

The U.S. Treasury's Office of Foreign Assets Control sanctioned the following crude oil ships and their owners for breaches of the crude oil sanctions:

Month Sanctioned ship Flag Sanctioned owner Note
October
2023 		SCF Primorye ◇
(IMO 9421960) 		Liberia Lumber Marine SA
(ultimate owner Sovcomflot) 		Carrying Novy Port crude oil priced above $75 per barrel. Used U.S.-based service provider.[22]
Yasa Golden Bosphorus ◇
(IMO 9334038) 		Marshall Islands Ice Pearl Navigation Corp
c/o Turkey 		Carried ESPO crude oil priced above $80 per barrel. Used U.S.-based service provider.[22]
November
2023 		Kazan ◇
(IMO 9258002) 		Liberia Kazan Shipping Incorporated
(ultimate owner Sovcomflot) 		Exporting Russian oil above the $60 price cap. Used U.S.-person services.[23]
Ligovsky Prospect ◇
(IMO 9256066) 		Liberia Progress Shipping Company Limited
(ultimate owner Sovcomflot) 		Exporting Russian oil above the $60 price cap. Used U.S.-person services.[23]
NS Century ◇ ◆
(IMO 9306782) 		Liberia Gallion Navigation Incorporated
(ultimate owner Sovcomflot) 		Exporting Russian oil above the $60 price cap. Used U.S.-person services.[23]
December
2023 		HS Atlantica
(IMO 9322839) 		Liberia HS Atlantica Limited
(managed by Maritas Fleet) 		Carrying Russian crude oil above agreed price cap. Used U.S.-person services.[24]
NS Champion
(IMO 9299719) 		Liberia Sterling Shipping Incorporated
(ultimate owner Sovcomflot) 		Carrying Russian crude oil above agreed price cap. Used U.S.-person services.[24]
Viktor Bakaev
(IMO 9610810) 		Liberia Streymoy Shipping Limited
(ultimate owner Sovcomflot) 		Carrying Russian crude oil above agreed price cap. Used U.S.-person services.[24]
January
2024 		Aristo ¤
(IMO 9327413) 		Liberia Hennesea Shipping Co Ltd
Dubai, United Arab Emirates
(ultimate owner Sovcomflot)
designated pursuant to E.O. 14024 for operating or having operated in the marine sector of the Russian Federation economy. 		Beneficially owned by Hennesea, as property in which Hennesea has an interest.[25][26]
Hai II
(IMO 9259599)
HS Arge
(IMO 9299745)
HS Atlantica ▶
(IMO 9322839)
HS Buraq
(IMO 9381732)
HS Esberg
(IMO 9410894)
HS Everett
(IMO 9410870)
HS Glory
(IMO 9249087)
HS Legend
(IMO 9381744)
HS Star
(IMO 9274446)
LA Pride
(IMO 9274616)
Mona ¤
(IMO 9314818)
Nellis
(IMO 9322267)
Osperous
(IMO 9412995)
Peria
(IMO 9322827)
Sara II ¤
(IMO 9301615)
Sensus ¤
(IMO 9296585)
Uze ¤
(IMO 9323338)
  • ◇ Since being sanctioned, a number of ships have ceased operations. In mid November 2023, SCF Primorye is in Russia, anchored near Murmansk. Yasa Golden Bosphorus unloaded and is now on charter to Exxon Mobil Corp and is waiting off Mexico. Kazan and Ligovsky Prospect are both in dock in China and NS Century was off Sri Lanka looking for a port to unload at.[27]
  • ◆ In mid December NS Century, whose original destination was Vadinar in India, was still waiting off Sri Lanka and had been joined by two other crude tankers owned by Sovocomflot. In addition the Krymsk has been stationary off the port of Paradip in India since 4 December and has been joined by the Nellis. These ships hold 5 million barrels of crude oil.[28] Reportedly Russia does not want to be paid in rupee's, preferring UAE dirham's, however Sakhalin 1 LLC has been unable to open a bank account.[29] India claimed the Russian oil was not at a competitive price.
  • ▶ HS Atlantica previously sanctioned in December 2023 for carrying Russian crude oil above agreed price cap.
  • ¤ Chemical/Oil product tanker

Finnish Customs said the tanker Eagle S is part of the shadow fleet after Finnish authorities launched an investigation into its potential sabotage of the underwater power cables between Estonia and Finland in the 2024 Estlink 2 incident.[30] The vessel was seized by Finnish authorities in the aftermath as the Estonian Navy launched an operation to protect undersea cables in the Baltic Sea.[31]

Oil traders

On 20 December 2023 the US Department of the Treasury announced sanctions against three companies that have traded Russian oil that had been sold at a price that did not comply with the price cap rules, including Voliton DMCC from the UAE and Bellatrix Energy Limited and Covart Energy Limited of Hong Kong. Covart owns oil products tanker Sanar 15 (IMO 9777670) which is also sanctioned.[32]

Insurance of tankers

Suspected breaches of sanctions by insurance companies are investigated. Sometimes the insurance company is provided with false information regarding the source of the cargo,[33] its price, the destination, and even the ships name and IMO number when an application for insurance is made.

Insurance company Ro Marine, based in Oslo, Norway, cancelled insurance on three tankers in December 2023, identified as non-compliant with oil price cap or dark trading allegations and is monitoring seven more.[34] Fake insurance documents from Ro Marine have been used to deceive NATO countries and support Russia's shadow fleet, which transports oil in violation of sanctions. Following exposés by Norwegian broadcaster NRK and Danish Danwatch, flag states have detained ships and revoked Ro Marine's approval, while NATO tightens controls and police investigate the company.[35][36][37]

Reactions

The European Union published a brief titled "Russia's 'shadow fleet': Bringing the threat to light", in October 2024, outlining Russia's tactics to evade sanctions.[38] On 14 November, the EU voted to adopt a resolution ensuring full enforcement of sanctions against Russia.[39][40]

Two boats believed to be part of Russia's shadow fleet caused an oil spill with severe environmental damage in the Black Sea in December 2024 due to the negligence by their Russian operators.[41] Following the major environmental crisis caused by the ships, the worst this century in the Black Sea region, Ukraine called for the international community to take action to deter the fleet.[42] Latvia also called for the ships to be banned from EU territorial waters.[3]

On 16 December 2024, twelve countries consisting of Britain, Germany, Poland, the Netherlands, the Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden) and the three Baltic states (Estonia, Latvia and Lithuania) agreed to cooperate to "disrupt and deter" Russia's shadow fleet to prevent sanctions breaches.[43] The UK announced additional sanctions against the shadow fleet the following day.[44]

In January 2025 the tanker Eventin, under the flag of Panama, left the Russian port Ust-Luga heading for Egypt. The ship lost engine power and drifted into German waters a few days later. It was put on a list of sanctioned ships by the European Union in February. After determining that the Eventin carried some 100,000 tons of sanctioned crude oil from Russia, German customs seized the ship and confiscated the cargo in an unprecedented step in March 2025, theoretically transferring the ownership to the German state.[45]

References

  1. ↑ Braw, Elisabeth (9 January 2025). "Greece Is Making a Killing Selling Ships to Russia" (in en-US). https://foreignpolicy.com/2023/09/11/greece-russia-tankers-oil-sanctions/. 
  2. ↑ 2.0 2.1 2.2 Braw, Elisabeth (11 January 2024). "Russia's growing dark fleet: Risks for the global maritime order" (in en-US). https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/russias-growing-dark-fleet-risks-for-the-global-maritime-order/. 
  3. ↑ 3.0 3.1 Gavin, Gabriel (16 December 2024). "Clamp down on Russian shadow fleet after tanker oil spill, says Latvia" (in en-GB). https://www.politico.eu/article/russia-shadow-fleet-tanker-oil-spill-black-sea-latvia/. 
  4. ↑ "The Shadow Tankers Sneaking Russian Oil Past Western Sanctions". YouTube. The Wall Street Journal. 15 February 2024. https://www.youtube.com/watch?v=16c32pvyx7k. 
  5. ↑ "The Shadow Fleet Fueling Russia's War". YouTube. Bloomberg Originals. 6 December 2023. https://www.youtube.com/watch?v=Azm4yKKIlqE. 
  6. ↑ "Russia Oil Tankers Do Strange Things Since US Sanctions Ramp-Up". YouTube. Bloomberg. 6 January 2024. https://www.bloomberg.com/news/articles/2024-01-05/russia-oil-tankers-do-strange-things-since-us-sanctions-ramp-up. 
  7. ↑ "Bosporus maritime traffic temporarily halted as tanker anchors". 21 January 2024. https://www.dailysabah.com/turkiye/istanbul/bosporus-maritime-traffic-temporarily-halted-as-tanker-anchors. 
  8. ↑ "Three tankers damaged by blasts in Mediterranean in the last month, causes unknown, sources say". Reuters. 19 February 2025. https://www.reuters.com/business/energy/three-tankers-damaged-by-blasts-mediterranean-last-month-causes-unknown-sources-2025-02-19/. 
  9. ↑ "Italians Investigating After Explosion Damages Greek Tanker at Savona" (in en). https://maritime-executive.com/article/italians-investigating-after-explosion-damages-greek-tanker-at-savona. 
  10. ↑ Decode39 (18 February 2025). "Italian incident with suspected Russian shadow tanker" (in en-US). https://decode39.com/9953/italian-incident-with-suspected-russian-shadow-tanker/. 
  11. ↑ 11.0 11.1 Peachey, Paul (7 March 2025). "Mine attacks on Russian port call ships carried out by divers backed by submersibles, experts say" (in en). https://www.tradewindsnews.com/tankers/mine-attacks-on-russian-port-call-ships-carried-out-by-divers-backed-by-submersibles-experts-say/2-1-1789834. 
  12. ↑ Kypriotaki, Anastasia (10 February 2025). "Tanker suffers explosion at Russia’s Ust-Luga port" (in en-US). https://safety4sea.com/tanker-suffers-explosion-at-russias-ust-luga-port/. 
  13. ↑ "Estonian navy seizes flagless, sanctioned tanker heading to Russia". 11 April 2025. https://www.lloydslist.com/LL1153166/Estonian-navy-seizes-flagless-sanctioned-tanker-heading-to-Russia. 
  14. ↑ "Estonia detains Russian 'shadow fleet'-linked oil tanker near Tallinn" (in en). 11 April 2025. https://www.euronews.com/my-europe/2025/04/11/estonian-authorities-detain-russian-shadow-fleet-linked-oil-tanker-near-tallinn. 
  15. ↑ сайта, из команды (11 April 2025). "В Финском заливе эстонский тральщик М6731 Admiral Cowan задержал танкер Kiwala под флагом Джибути -" (in ru-RU). https://podolyaka.ru/v-finskom-zalive-estonskiy-tralschik-m6731-admiral-cowan-zaderzhal-tanker-kiwala-pod-flagom-dzhibuti/. 
  16. ↑ 16.0 16.1 "Estonia attempts to detain “civilian vessel” in Gulf of Finland, ship confirmed as member of Russia’s “shadow fleet”" (in ru). https://theins.ru/en/news/281297. 
  17. ↑ ERR News (2025-05-14). "Navy escorts suspected 'shadow fleet' tanker out of Estonian waters" (in en). https://news.err.ee/1609694456/navy-escorts-suspected-shadow-fleet-tanker-out-of-estonian-waters. 
  18. ↑ ERR News (2025-05-14). "Russian fighter jet breaches Estonia's airspace" (in en). https://news.err.ee/1609694252/russian-fighter-jet-breaches-estonia-s-airspace. 
  19. ↑ Erling, Barbara; Strzelecki, Marek (2025-05-21). "Poland intervenes as Russian 'shadow fleet' ship spotted near power cable" (in en). Reuters. https://www.reuters.com/world/europe/poland-says-russian-ship-performed-suspicious-manoeuvres-near-cable-sweden-2025-05-21/. 
  20. ↑ "US to impose sanctions on Russian oil fleet and traders, document shows" (in en-US). Reuters. https://www.reuters.com/business/energy/new-us-sanctions-russian-tankers-hit-oil-supplies-india-refining-sources-say-2025-01-10/. 
  21. ↑ "Treasury Intensifies Sanctions Against Russia by Targeting Russia’s Oil Production and Exports" (in en). 23 December 2024. https://home.treasury.gov/news/press-releases/jy2777. 
  22. ↑ 22.0 22.1 "Treasury Sanctions Entities for Transporting Oil Sold Above the Coalition Price Cap to Restrict Russia's War Machine". 12 October 2023. https://home.treasury.gov/news/press-releases/jy1795. 
  23. ↑ 23.0 23.1 23.2 "Balkans-related Designations; Russia-related Designations and Designation Update; Issuance of Russia-related General License, Balkans-related General Licenses, and Frequently Asked Question". 16 November 2023. https://ofac.treasury.gov/recent-actions/20231116. 
  24. ↑ 24.0 24.1 24.2 "Russia-related Designations; Issuance of Russia-related General License". 1 December 2023. https://ofac.treasury.gov/recent-actions/20231201. 
  25. ↑ "US Sanctions UAE Shipping Firm for Violating Russian Crude Oil Price Cap". 18 January 2024. https://www.voanews.com/a/us-sanctions-uae-shipping-firm-for-violating-russian-crude-oil-price-cap/7445471.html. 
  26. ↑ "Treasury Targets Price Cap Violation-Linked Shipping Company". 18 January 2024. https://home.treasury.gov/news/press-releases/jy2028. 
  27. ↑ "What happened to five oil tankers sanctioned for Russia violations". 22 November 2022. https://www.ajot.com/news/what-happened-to-five-oil-tankers-sanctioned-for-russia-violations. 
  28. ↑ "Sokol Oil from Russia Encounters Delays on Tankers During Transit to India.". 20 December 2023. https://www.fastbull.com/news-detail/sokol-oil-from-russia-encounters-delays-on-tankers-554045_0. 
  29. ↑ "Russia wants to topple dollar dominance, but it isn't even able to deliver oil to India with alternative currencies". 27 December 2023. https://www.businessinsider.com/dedollarization-russia-dollar-usd-dominance-india-oil-uae-dirham-yuan-2023-12. 
  30. ↑ Tahir, Tariq (26 December 2024). "Finns suspect Russian shadow fleet tanker sabotaged Baltic power cable". https://www.thenationalnews.com/news/europe/2024/12/26/finns-suspect-russian-shadow-fleet-tanker-sabotaged-baltic-power-cable/. 
  31. ↑ "As Finland seizes Russian ship, Estonia launches naval patrols" (in en-GB). 27 December 2024. https://www.politico.eu/article/estonia-finland-russia-shipnaval-ports-sanction-germany-baltic-sea/. 
  32. ↑ "Treasury Tightens the Price Cap with New Sanctions and Updated Guidance". 20 December 2023. https://home.treasury.gov/news/press-releases/jy2008. 
  33. ↑ "A shadow-fleet oil tanker that falsified its location and carried Venezuelan crude got stuck near Singapore". 8 December 2023. https://finance.yahoo.com/news/shadow-fleet-oil-tanker-falsified-225724219.html. 
  34. ↑ "Norway's Ro Marine cancels P&I coverage for tankers breaching Russia sanctions". 12 December 2023. https://www.lloydslist.com/LL1147581/Norways-Ro-Marine-cancels-PI-coverage-for-tankers-breaching-Russia-sanctions. 
  35. ↑ Espeland, Stian (4 April 2025). "Stans-ordre og haste-tiltak mot skip over hele verden" (in nb-NO). https://www.nrk.no/vestland/flaggstater-verden-rundt-stanser-skip-og-palegger-tiltak-etter-avsloring-fra-nrk-og-danwatch-1.17363840. 
  36. ↑ Espeland, Stian (25 March 2025). "Falske dokumenter brukt til å lure Nato-land i skyggeflåte-kontroller" (in nb-NO). https://www.nrk.no/vestland/xl/falske-dokument-fra-norsk-selskap-brukt-til-a-lure-nato-land-i-skyggeflate-kontroller-1.17354948. 
  37. ↑ Network, MI News (3 April 2025). "Norwegian Firm Under Investigation For Fake Insurance Of Russian Tankers" (in en-US). https://www.marineinsight.com/shipping-news/norwegian-firm-under-investigation-for-fake-insurance-of-russian-tankers/. 
  38. ↑ Caprile, Anna; Leclerc, Gabija (November 2024). "Russia's 'shadow fleet': Bringing the threat to light". European Parliament. https://www.europarl.europa.eu/RegData/etudes/BRIE/2024/766242/EPRS_BRI(2024)766242_EN.pdf. 
  39. ↑ "Europe Parliament Calls for Crackdown on Russia’s Shadow Fleet" (in en). https://maritime-executive.com/article/europe-parliament-calls-for-crackdown-on-russia-s-shadow-fleet. 
  40. ↑ "Document summary | Legislative Observatory | European Parliament". https://oeil.secure.europarl.europa.eu/oeil/en/document-summary?id=1795760. 
  41. ↑ "Russian oil tanker breaks up, another in distress in Black Sea" (in en-GB). 15 December 2024. https://www.politico.eu/article/russia-oil-tankers-distress-spill-black-sea-kerch-strait/. 
  42. ↑ Harding, Luke (16 December 2024). "Ukraine calls for sanctions against Russia oil tankers over Black Sea spill" (in en-GB). The Guardian. ISSN 0261-3077. https://www.theguardian.com/world/2024/dec/16/ukraine-calls-for-sanctions-against-russia-oil-tankers-over-black-sea-spill. 
  43. ↑ Sytas, Andrius (16 December 2024). "Western nations agree to 'disrupt and deter' Russia shadow fleet, Estonia says". Reuters. https://www.reuters.com/world/europe/western-nations-agree-disrupt-deter-russia-shadow-fleet-estonia-says-2024-12-16/. 
  44. ↑ "UK slaps new sanctions on Russian shadow fleet" (in en-GB). 17 December 2024. https://www.politico.eu/article/uk-new-sanction-russian-shadow-fleet-oil-war/. 
  45. ↑ Staib, Julian (21 March 2025). "Zoll beschlagnahmt Tanker der russischen Schattenflotte" (in de). https://www.faz.net/aktuell/politik/inland/russlands-schattenflotte-zoll-beschlagnahmt-tanker-110371513.html. 



Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Russian_shadow_fleet&oldid=3740318"