Russia‘s shadow fleet of old, uninsured tankers used to evade sanctions is increasingly suffering damage and destruction, revealing how vulnerable this covert logistics network has become.
The rise in insurance costs in Black Sea ports by 250% due to attacks on Russian ships has put significant pressure on the already struggling fleet. According to sources, over $10 billion has been spent by Russia to build this fleet since 2022, making it a substantial investment for the country.
Shadow Fleet’s Vulnerabilities
The shadow fleet’s reliance on old and uninsured tankers has left it exposed to attacks and damage. With 17% of all tankers worldwide being part of Russia‘s shadow fleet, roughly every sixth vessel is vulnerable to attack or destruction. This vulnerability has significant implications for Russia’s ability to maintain its sanctions-busting operations.
Insurance Costs Soar
The increase in insurance costs in Black Sea ports is a direct result of the attacks on Russian ships. As the cost of insuring these vessels continues to rise, it becomes increasingly difficult for Russia to sustain its shadow fleet. This could have significant implications for the country’s ability to maintain its sanctions-busting operations.
The Cost of Building the Fleet
Russia has spent over $10 billion building its shadow fleet since 2022. This investment is substantial and highlights the importance Russia places on maintaining its covert logistics network. However, this investment may ultimately prove futile if the fleet continues to suffer damage and destruction at the hands of attackers.
Sources: The New York Times, War&Sanctions, Bloomberg, NV
Original Article: Russia struggles to protect its shadow fleet tankers — Nv