Russian Tanker Sales and Sanctions
A recent investigation led by Dutch outlet Follow the Money (FTM) has revealed that shipowners from Europe and the US have sold at least 230 ageing tankers to Russian buyers, contributing to Moscow’s “shadow fleet” used to evade Western sanctions on its oil exports. The sale of these vessels has generated over £4.8 billion in revenue for the owners.
Details of the Sales
The investigation found that Greek owners had sold the largest number of tankers, offloading 127 vessels, while UK companies sold 22 and German and Norwegian owners sold 11 and eight respectively. The majority of these vessels would have otherwise been scrapped at a fraction of their current value.
Case Studies
The report highlights two specific cases: two 15-year-old Greek-owned tankers that were sold to a Hanoi-based company, renamed, and reflagged from Malta to Panama, which later collected Russian oil from the Baltic port of Ust-Luga. Another example is CMB.Tech, a Belgian marine transport group, which sold five tankers for $135 million that ended up in the shadow fleet.
Government Responses
The investigation also found that Western governments have been aware of this issue and have taken steps to address it. The G7 and EU introduced an oil price cap in late 2022, barring companies registered on their territories from facilitating sales of Russian oil above a certain price. This move led to a surge in prices for vessels that could be registered in non-Western jurisdictions.
The report notes that the sale of these tankers has allowed Russia to continue evading Western sanctions and funding its war against Ukraine. The shadow fleet is estimated to account for around 70% of all Russian oil exports, with many of these vessels being used to carry Russian oil, conduct espionage activities for Moscow, and chart or destroy vital undersea infrastructure.
The EU has since introduced new rules requiring companies selling vessels to third countries to check that they are not being used to bust sanctions. However, despite this, 32 European-owned tankers have been sold into the shadow fleet since then. The US and EU have also taken further measures to address this issue, including barring individual tankers from EU ports and services.
Overall, the investigation highlights the significant impact of these sanctions on the maritime industry, with many shipowners and companies being forced to adapt to new regulations and restrictions. The report emphasizes the need for continued vigilance and cooperation between governments and industries to prevent the misuse of vessels and ensure that sanctions are effective in achieving their intended goals.
Original Article: Shipowners have made £4.8bn selling tankers to Russian ‘shadow fleet’ — The Guardian