Western sanctions and price caps on Russian oil have led to the rise of a vast shadow fleet of ageing tankers that now accounts for 17 per cent of global oil carriers, reports Mumbai's Money Control.
These vessels often operate under flags of convenience, falsify location data, and conduct ship-to-ship transfers at sea to mask the origin of Russian oil. This allows buyers in India, China and other markets to maintain plausible deniability.
Following Europe's ban on Russian seaborne oil in late 2022, longer voyages to Asia became necessary, prompting a surge in purchases of older ships. This has created a grey market that undermines the effectiveness of sanctions.
Despite the workaround, Russia faces higher costs. Maintaining the fleet and shipping oil to distant buyers is expensive. US and European reports say the shadow fleet has blunted the impact of sanctions but increased Russia's transport expenses.
The shadow fleet's opaque ownership and dubious insurance make it difficult to regulate, posing global risks and complicating enforcement efforts.
SeaNews Turkey
These vessels often operate under flags of convenience, falsify location data, and conduct ship-to-ship transfers at sea to mask the origin of Russian oil. This allows buyers in India, China and other markets to maintain plausible deniability.
Following Europe's ban on Russian seaborne oil in late 2022, longer voyages to Asia became necessary, prompting a surge in purchases of older ships. This has created a grey market that undermines the effectiveness of sanctions.
Despite the workaround, Russia faces higher costs. Maintaining the fleet and shipping oil to distant buyers is expensive. US and European reports say the shadow fleet has blunted the impact of sanctions but increased Russia's transport expenses.
The shadow fleet's opaque ownership and dubious insurance make it difficult to regulate, posing global risks and complicating enforcement efforts.
SeaNews Turkey
