Russia’s shadow fleet is increasing the volume of oil shipments despite the sanctions

The capacity of the Russian shadow fleet, which transports oil on old and uninsured vessels, has increased by 70%.

Since 2023, despite Western sanctions, the Russian shadow fleet has increased its oil transportation capacity by 70%, reports Economic Truth.

According to a study by the Kyiv School of Economics (KSE), the amount of oil transported by such tankers increased from 2.4 million barrels per day in June 2023 to 4.1 million in June 2024.

The US, EU and other allies continue to increase sanctions pressure on ship owners and insurance companies to limit Moscow’s ability to finance the war against Ukraine. Despite this, a significant number of shadow fleet vessels, including tankers in the Baltic and Mediterranean seas, continue to operate, posing an increased risk to the region’s environmental security.

The KSE report also notes that Russia has spent more than $10 billion building this fleet. In June 2024, 70% of marine oil from Russia was transported by “shadow” vessels, which included 89% of crude oil and 38% of petroleum products. Most of these cargoes were sold at a price above the set limit of $60 per barrel.

Experts warn that the use of old tankers, the average age of which is 18 years, as well as the lack of adequate insurance, increase the risk of accidents. Incidents with Russian shadow vessels have already been recorded, in particular with the Andromeda Star tanker near Denmark in March 2024. Although there was no oil spill, the very fact of the accident highlights the danger to the environment.

In this regard, KSE proposes to create shadow fleet-free zones in European waters to reduce environmental risks.