Following Russia’s unprovoked invasion of Ukraine, the European Union (EU), G7, and allied partners imposed extensive sanctions targeting Russia’s economy, in particular the oil sector, in an effort to curb the Kremlin’s revenues which finance its war effort. Key measures include an embargo on Russian seaborne oil imports and a price cap on oil and oil products that restricts profits while still allowing sales below a certain price. Enforcement mechanisms prevent Russia from chartering or insuring oil tankers unless they comply with these limits. In response, Russia has sought new markets and established a ‘shadow fleet’ to evade these restrictions. The terms ‘shadow fleet’, ‘dark fleet’ and ‘grey fleet’ have gained prominence following the imposition of sanctions on Russian energy exports, yet their definitions remain inconsistent among experts, leading to confusion.

Analysts increasingly recognise that the broader definition, encompassing all vessels lacking Western insurance and belonging to non-EU/G7+ companies, captures the diverse tactics employed by Russia to circumvent sanctions and highlights the potential risks associated with these operations. To evade sanctions, the Russian ‘shadow fleet’ makes use of flags of convenience and intricate ownership and management structures while employing a variety of tactics to conceal the origins of its cargo, including: ship-to-ship transfers; automatic identification system blackouts; falsified positions; transmission of false data; and other deceptive or even illegal techniques.

In addition to bolstering its war chest, Russia’s ‘shadow fleet’, which consists of a growing number of aging and poorly maintained vessels that operate with minimal regard to the regulations, poses significant environmental, maritime safety, and security risks. As Russia depends increasingly on its ‘shadow fleet’ to maintain oil exports, the EU and allied nations have implemented measures to counter these evasive tactics. These include imposing targeted sanctions on specific vessels and enhancing international collaboration to disrupt such activities. During a plenary debate in October 2024, Members of the European Parliament called for enhanced maritime surveillance, tighter shipping controls, and expanded sanctions to address the significant environmental and safety threats posed by these vessels. Parliament is expected to vote on a resolution on this issue during its November I 2024 plenary session.

Source: European Parliament