FAQ
With dilapidated ships, whose ownership is unclear and their risks are under insured, Russia is specifically avoiding international sanctions. How big and how dangerous is this “shadow fleet”?
What is a “shadow fleet”?
The term “shadow fleet” or “dark fleet”, which generally describes ships used for the smuggling of the goods, has been increasingly needed for tankers since the Russian invasion of Ukraine in 2022, which uses Russia to avoid western sanctions. This fleet mainly consists of older oil tankers, which are maintained below average, whose ownership is disguised and whose risks are severely under insured.
The sanctions in particular prohibit western companies to grant Russian oil exporters ships, financing and insurance benefits, provided that the oil is not sold with a significant discount at the market prices. There are also bans in western ports, which are increasingly expanded to identified “shadow ships”. The sanctions aim to minimize the revenue of the Kremlin from the oil exports without at the same time disturbing international oil supply.
How big is Russia's “shadow fleet”?
Current estimates assume more than 400 ships. The British Maritime Information Service Lloyd's List Intelligence estimates the “shadow fleet” up to 460 tankers. That is about ten to 15 percent of global tank capacity. However, the ships used should often change, which makes it more difficult.
As the “Financial Times” has documented, Russian oil companies use individual financiers as straw men to acquire tankers outdated worldwide through a network of offshore companies with Russian money and operate via other camouflage companies, for example in Dubai.
What is the importance of tankers for Russia?
According to the Kyiv School of Economics, Russia has invested up to ten billion dollars in building the “shadow fleet”. In June 2024, it transported 4.1 million barrels (around 650 million liters) of oil every day. This corresponded to around 70 percent of the maritime oil exports in Russia.
Most of it was delivered to China and India. The Ukrainian Thinktank puts the entire Russian oil revenue for 2024 to $ 193 billion.
Which sanctions aim directly at the “shadow fleet”?
The EU countries started sanctioning individual oil tankers in the summer of 2024 that do not drive under the Russian flag but are assigned to the “shadow fleet”. This means that they do not start any ports of the community and that no services from companies from the EU may be used.
So far, Brussels has sanctioned almost 80 ships, Great Britain over 50, while the United States has recently placed 183 ships on the sanction list. Further sanctions should be in preparation in coordination with the G7 countries.
The direct sanctioning of individual ships is considered quite effective. Most recently, China US sanctioned tankers refused to enter the port of Shandong. However, the identification of the true owners and clients remains difficult for the authorities, and Russia often seems to change the commissioned ships, which makes the “shadow fleet” fight a cat-and-mouse game.
Which Security incidents there was with “Shadow ships”?
Experts warn of the high risks of the poorly maintained and under -insured tankers for the environment. On average, the tankers used are 18 years old, estimates the Kyiv School of Economics. In view of the regulatory gaps and the growing importance of the “shadow anchor” in the Russian oil trade, “a large environmental disaster is only a matter of time,” warns the Ukrainian institute.
So far, several incidents have been registered with tankers, which could only be identified as “shadow anchor”. It was mainly machine damage, such as the accident of the “Canis Power” registered in the United Arab Emirates off the Danish coast in May 2023.
The oil tankers “Eventin” and “Eagle S” in the Baltic Sea, both of which are attributed to the “shadow fleet”, caused a stir. The “event” was lifted on Friday before Rügen. The tanker driving under Panamaic flag is no longer at risk.
The incident with the “Eagle S”, which drives under the flag of the cooked islands and presumably damaged the power line running between Finland and Estonia and four communication cables, presumably damaged with their anchor. This could be an indication that the Kremlin is also ready to use the fleet as a weapon in its hybrid war against the West.
