Sales to the Russian Shadow Fleet
The term “Shadow Fleet” is frequently used and recently hit the headlines in connection with the involvement of Western shipping companies. We want to clarify the terminology and background. To this end, we are referring to an article by the Naval Shipping Administration, which deals with the special situation of the Russian shadow fleet in the Baltic Sea and was published on bundeswehr.org in the past few days.
According to the latest news, since the Russian invasion of Ukraine in 2022, European and US shipping companies have sold at least 230 older tankers to Russian, Russian-related, and other owners. These sales generated income of over $6.3 billion for the owners. Shipping companies from Greece, the United Kingdom, Germany, and Norway are particularly involved in these sales. The ships were often sold to buyers in countries such as India, Hong Kong, Vietnam, and the Seychelles.
The practice has enabled Russia to continue exporting oil while circumventing sanctions. The revelation of this involvement of European companies sheds new light on the complex and illegal activities of the Russian shadow fleet and the continued disregard for international sanctions. The practice not only jeopardizes the effectiveness of sanctions but also poses a significant risk to maritime safety and environmental protection.
Understanding the Shadow Fleet
The renowned British platform Windward.ai, which analyses shipping issues, distinguishes between a grey and a dark part. The dark part is the group commonly referred to as the shadow fleet. With the synonymously used terms “dark fleet” and “Shadow Fleet,” it describes a group of ships that engage in fraudulent practices.
After the outbreak of the war, foreign companies were quickly established to disguise the origin and ownership of the ships and give the impression that they were law-abiding/sanctions-free. Windward describes this category as “grey” because it is often difficult to determine their legality and compliance with sanctions. A significant number of these vessels also change flags frequently (“Flag hopping”). This approach conceals the identity of Russian importers of crude oil and oil products.
The grey fleet is trading quasi-legally, so to speak. Worldwide, over 1,000 grey ships are in operation. While 44 percent of these are oil product tankers, crude oil tankers make up 31 percent.
Original Article: About the term Shadow Fleet — Marineforum