The largest center for “shadow transshipment” of oil to circumvent sanctions was discovered near Malaysia
21.11.2024 - 12:00
In the South China Sea, 60 km off the coast of Malaysia, is the world’s largest “shadow” oil transshipment center.
It is used to circumvent international sanctions. This is according to a Bloomberg investigation.
The number of oil transshipment operations between tankers in this area has doubled since 2020. In just nine months of 2024, about 350 million barrels of oil passed through this center, the total value of which is estimated at at least $20 billion.
The transshipment is carried out by Iranian tankers, which transfer oil to other vessels. These vessels deliver sanctioned oil, mainly to Chinese ports. At the same time, China officially stopped importing Iranian oil in 2022.
The transshipment site is located in Malaysia’s exclusive economic zone, but outside its territorial waters. This limits the country’s ability to control activities in this area.
In addition, neither Malaysia nor its neighbors have shown much interest in tightening controls, given their economic and political ties with Iran and China.
The transshipment hub in the South China Sea has become a key point for circumventing international sanctions imposed on Iranian oil. The use of such schemes undermines the effectiveness of sanctions and remains a challenge for international monitoring.
Photo: Bloomberg, European Space Agency.
Earlier, USM reported that the European Parliament had adopted a resolution calling for tougher sanctions against the “shadow fleet” that provides oil exports.
