Indian Coast Guard Intercepts Three Vessels in International Oil-Smuggling Racket
On February 6, the Indian Coast Guard said it intercepted three vessels about 100 nautical miles west of Mumbai in a coordinated sea-air operation, busting an international oil-smuggling racket operating in international waters. Officials said the syndicate used mid-sea transfers to move cheap oil from conflict-ridden regions onto motor tankers, thus evading duties owed to coastal states. The ships are being escorted to Mumbai for legal action.
The case has brought to light how illegal and sanctioned oil continues to move across global seas via a shadow system of tankers, false flags and mid-ocean transfers that has expanded sharply in recent years as sanctions enforcement on nations such as Russia and Iran has tightened.
How Sanctioned Oil Travels the World
While oil under international sanctions cannot move openly through global markets, it travels through a parallel maritime system built to hide its origin, ownership and destination. This system relies on ageing oil tankers, complex ownership structures, false identities and mid-sea transfers that allow cargoes to change hands away from port checks or customs authorities.
What Does It Mean When Oil is “Sanctioned”?
Sanctioned oil refers to crude or refined petroleum products whose sale or transport is restricted by governments or international blocs, usually as a tool of foreign policy. The United States and the European Union have imposed sanctions on oil exports from countries such as Iran, Venezuela and Russia, aiming to cut off revenue streams linked to war, terrorism or human rights abuses.
How Shadow Tankers Move Sanctioned Oil
To evade sanctions, operators rely on what shipping analysts call the “shadow fleet” or “ghost fleet”. These tankers deliberately operate outside normal maritime transparency. Such vessels often change their names, flags and registered owners frequently, sometimes flying false flags or broadcasting fake identities. They may switch off their automatic identification system (AIS) transponders, a practice known as “going dark”, or spoof their locations to appear thousands of miles away from where they actually are.
The Size of the Shadow Tanker Fleet
There is no precise count, largely because the system is designed to evade measurement by operating in the shadows. However, shipping and energy experts cited by The New York Times estimate that shadow tankers may account for as much as 20 per cent of the global oil tanker fleet. This number has grown sharply since 2022, after sanctions were expanded following Russia’s invasion of Ukraine. According to an S&P Global report, the fleet grew by about 45 per cent between May 2024 and May 2025. The report added that Panama is currently the single largest flag state for the shadow fleet, accounting for 22 per cent of its vessels.
US Action in the Caribbean
In December last year, US authorities seized two oil tankers in the Caribbean accused of transporting sanctioned crude. One of them, later identified as the Marinera, had previously operated under the name Bella 1, reported The
Original Article: How sanctioned oil travels the world through shadow fleets and fake flags — Business-Standard