The French authorities have taken control of a tanker vessel, The Grinch, suspected of flying an inaccurate flag and carrying sanctioned oil, marking a significant development in the global effort to curb the Russian shadow fleet.
On January 22nd, French naval forces intercepted and seized the ship, which was reportedly part of the shuttle fleet used by Russia, Iran, and Venezuela to transport their oil. This move has sent shockwaves through the energy market, as it marks the first instance where a country has used military force to enforce sanctions on Russia.
The French authorities have towed the vessel to Marseilles for investigation, and if the ship is found to be carrying sanctioned oil, its cargo may be seized and distributed. This could lead to a domino effect, with other NATO countries and non-NATO nations following suit and gobbling up the entire shadow fleet in a matter of weeks.
French Seizure Sets Precedent for Global Sanctions Enforcement
The French authorities’ decision to seize The Grinch sets a precedent for global sanctions enforcement. This move sends a strong message that countries will no longer tolerate the use of inaccurate flags and sanctioned oil, and it may prompt other nations to take similar action.
GM’s Global Maritime Services Applies to Manage Foreign Assets
Meanwhile, GM’s Global Maritime Services has applied for permission to manage foreign assets, including the shadow fleet. The company has expressed interest in bidding on and paying for these vessels, with the intention of breaking them down and removing them from service completely.
This development is significant, as it marks a turning point in the global effort to curb the shadow fleet. GM’s Global Maritime Services is the largest company to have expressed an interest in playing a role in this process, and its application has been made directly to the U.S. government.
Consequences of Removing the Shadow Fleet
The removal of the shadow fleet will have significant consequences for energy markets. The collective carrying capacity of these tankers is approximately 5 million barrels of crude per day, which will cause a lot of pain in many places, particularly for countries that will no longer be able to sell their crude.
Iran and the Russian Federation are likely to be most affected by this development, as they rely heavily on the shadow fleet to transport their oil. The removal of these vessels will disrupt global energy supplies and have far-reaching implications for the economy.
As the situation continues to unfold, it is clear that the French seizure of The Grinch marks a significant turning point in the global effort to curb the Russian shadow fleet. The consequences of removing this fleet will be far-reaching and will have a profound impact on energy markets around the world.
Original Article: The End of the Shadow Fleet? – French Edition — Zeihan