Fuel Smuggling Network in Eastern Libya Grows to Billion-Dollar Industry
Fuel smuggling from Libya has grown into a billion-dollar industry, yet the full scale of the maritime network that systematically moves refined petroleum products out of the country remains largely hidden. According to international observers, diesel smuggling in Libya is growing exponentially every year, a trend also confirmed by the Libyan Court of Auditors.
The country has very limited refining capacity for its own crude oil and maintains a massive subsidy program to import large quantities. The main supplier is Russia, which sends more than a third of all the fuel that Libya receives. This reliance on Russian diesel has led to concerns about the potential impact of international sanctions on the Libyan economy.
New “Dark Fleet” Smuggling Diesel in the Mediterranean
A tanker was arrested off the coast of Sicily while transferring hundreds of thousands of liters of possible Russian origin diesel. Its movements around Malta, Italy, and Libya hint at an emerging smuggling route. The vessel’s arrest has raised questions about the scale of the illegal fuel trade and its potential impact on global energy markets.
Smugglers are known to prefer working with imported products, which they consider a higher quality. Regardless of whether the origin of each smuggled shipment can be confirmed, it is safe to estimate that at least one in three liters of all smuggled diesel is Russian.
Alkagesta’s Involvement in the Fuel Smuggling Network
Multiple Turkish maritime and governmental sources have confirmed that Alkagesta leased CAN KA, with the Turkish Ministry of Transport and Infrastructure (Denizcilik Genel Müdürlüğü) announcing its incorporation into the nation’s trading fleet. The tanker was chartered by Malta-based Alkagesta and registered under the Turkish flag.
Alkagesta also rented a 120,000 cubic meter storage area at Opet Marmara Ereğlisi Terminal. The company has been granted a 15-year bunker fuel supply license by the Energy Market Regulatory Authority (EMRA), allowing it to supply distillate marine fuel and residual marine fuel to Turkey.
The Mediterranean Dark Fleet’s Operations
The Mediterranean dark fleet itself is divided into two groups, depending on the area in which they operate. One group sails east and north: many frequently dock in the Black Sea at the port of Novorossiysk, one of the main exit points for Russian petroleum products. Another group seems to depart from ports in Syria, Turkey, and Northern Cyprus, which all then head into Libyan waters to turn off their tracking systems.
The Nobel, an old tanker built in 1997 and owned by Russian Rusprimeexport LLC until 2022, is one example of a vessel involved in this illegal trade. The Angelo 2 was until 2022 owned by Uvas-Trans LLC from Kerch, in Crimea, occupied by Russia since 2014. It was flagged in 2018 by the UN Panel of Experts on Libya for involvement in a suspected case of smuggling from eastern Libya.
The Grace Felix made several trips of this type before being arrested off the coast of Sicily. The full extent of the fuel smuggling network remains unclear, but it is evident that Alkagesta and other companies are playing a significant role in this illegal trade.
Vessels Mentioned
- CAN KA (IMO: 9312925)
Original Article: How the dark fleet works: Russian diesel rerouted via Benghazi, relabeled offshore and sold through Alkagesta • Медіа•Хаб — Hab