Russia’s Shadow Fleet Continues to Evade Sanctions, Fund Kremlin’s War Efforts
Russia‘s shadow fleet has continued to move oil and channel money to Moscow, despite sanctions meant to stop the trade, found an investigation by FTM. Tankers are regularly renamed, reflagged, and transferred through shell companies, allowing them to evade detection and keep funding the Kremlin’s all-out war in Ukraine.
The investigation analyzed five years’ worth of data on all 636 shadow fleet tankers sanctioned by the West, and studied their locations, routes, and cargo. It also interviewed a wide range of analysts and academics with expertise in sanctions and knowledge of the shadow fleet.
Sanctions Fail to Stop Russian Oil Trade
Despite being sanctioned by the U.K., EU, and US, the oil tanker Celt continued to operate, passing through the Baltic Sea, North Sea, and Mediterranean before arriving on the east coast of Malaysia. The ship was carrying Russian oil that funds the Kremlin’s war in Ukraine.
The sanctions were intended to stop ships like the Celt from carrying Russian oil, but in reality, they have failed to meaningfully cut the cash flow. As a result, the Celt continues to sail as part of Russia‘s shadow fleet – a vast network of old tankers used by Moscow to dodge sanctions.
Shadow Fleet Employes Every Trick in the Book
These vessels employ every trick in the book – flag swapping, name changes, hidden ownership, and ship-to-ship transfers – to keep Russian oil money flowing. By processing five years’ worth of data on 636 sanctioned tankers, including their whereabouts and recent movements, FTM has shone a rare spotlight on the extent of Russia‘s illicit activities.
Western Scramble to Reduce Reliance on Russian Oil
When Russia launched its full-scale invasion of Ukraine in February 2022, the West scrambled to find ways to reduce its reliance on Russian oil and energy. Cutting off Russia from the world’s markets was not an option, as many countries still relied on Moscow for a large share of their energy supply.
In the US, a full oil embargo was a no-go over fears that prices would skyrocket if Russia – which contributes about 11 per cent of the global supply – was locked out of the market. After months of talks between the US and Europe, particularly Poland and the Baltic states, which wanted to hit Russia hard, a compromise was reached.
Russian oil could be sold for no more than $60 per barrel, and the EU and US would stop importing seaborne oil. However, this compromise has failed to stop Russia‘s shadow fleet from continuing to operate, and the Kremlin continues to funnel money into its war chest.
Original Article: Russia’s shadow fleet shakes off Western sanctions to keep oil revenues flowing — Ftm