US Seizes Oil Tankers in Venezuelan Waters Amid Crackdown on ‘Shadow Fleet’
The United States is increasing pressure on the elusive “shadow fleet” of oil tankers that has helped fund Russia’s war in Ukraine, seizing over half a dozen vessels in Venezuelan waters in recent weeks.
Since the start of December, the Trump administration has seized seven oil tankers that were, or were previously known for, carrying Venezuelan oil. The seizures began as part of the administration’s campaign to oust former Venezuelan dictator Nicolas Maduro, but have continued as President Donald Trump seeks to rebuild the country’s oil industry and escalate its crackdown on other sanctioned ships known or suspected to be part of a shadow fleet.
The White House is trying to use the leverage given to it via the blockade to force the Venezuelan government, now led by Maduro’s vice president, Delcy Rodriguez, to capitulate to its demands. There is now speculation as to whether the administration’s actions could lead other vessels within this broader shadow fleet to stop transporting sanctioned oil from countries such as Russia and Iran over fears of being targeted in similar operations.
What is the Shadow Fleet?
The shadow fleet is the name given to the hundreds, if not thousands, of illegal tankers Iran, Russia, and Venezuela primarily operate while trying to evade Western sanctions and legal requirements. The exact number of ships currently part of this fleet is unknown, though experts estimate there are roughly 1,000 vessels transporting oil and other commodities in violation of U.S. and other Western sanctions.
These tankers are often older and beyond their expected shelf life. Their crews will frequently try to distort information about their location, activity, where they’re coming from, and their intended port. Even though buying oil from countries in contravention of existing sanctions or international law has legal risks, the oil itself is often cheaper, thus making it attractive to buyers.
Russia’s Role in the Shadow Fleet
Russia is considered to be one of the primary culprits using this fleet to get around European Union and U.S. sanctions and continue selling its crude to China and India. Moscow has relied on the revenue from these sales to fuel its yearslong war in Ukraine. In December, the Centre for Research on Energy and Clean Air estimated that roughly 28% of the 93 identified shadow vessels operating under false flags at the end of the month were carrying Russian crude oil and oil products.
The majority of Russian crude oil exports, around 68%, continue to be carried by these sanctioned shadow tankers, CREA found. Iran has also been heavily accused of utilizing the shadow fleet to get around international sanctions to facilitate oil sales and use the funds for what the Trump administration has described as “destabilizing activities.”
Western Crackdown
The shadow fleet began to expand rapidly following Russia’s invasion of Ukraine in February 2022. At the time, the Group of Seven implemented a price cap of $60 a barrel on Russian oil. The idea was to restrict the amount of money Moscow could make through its oil exports and thereby limit its ability to fund military activities.
The United States is now increasing pressure on the shadow fleet by seizing vessels in Venezuelan waters and targeting other ships suspected of being part of this broader network. The goal is to disrupt Iran, Russia, and Venezuela’s efforts to evade sanctions and international maritime laws, though it’s still too early to tell how successful the measures will be.
Despite this, experts believe that the Trump administration’s actions could have significant implications for the global oil market and the countries involved in the shadow fleet. As the situation continues to unfold, it remains to be seen whether the administration’s efforts will lead to a meaningful reduction in sanctioned oil exports or simply prompt more creative evasion tactics from nefarious operators.
Original Article: How Trump’s oil tanker seizures add to crackdown on ‘shadow fleet’ — Washingtonexaminer