Shadow Fleet Fueling Russia’s War

The Shadow Fleet Fueling Russia’s War.

An armada of aging oil tankers called the Shadow Fleet is helping to keep Russian oil flowing. Hundreds of vessels are part of a “shadow fleet” that’s allowed the Kremlin to dodge Western sanctions over its war on Ukraine.

In recent years, the world has witnessed an increase in the use of aging oil tankers by Russia, as a means to keep their oil flowing despite facing sanctions from the West over their involvement in the war in Ukraine. These vessels, part of a so-called “shadow fleet”, have become a key component in the Kremlin’s strategy to circumvent sanctions and continue their lucrative oil exports. In a recent investigation, Bloomberg delved into this network of traders, intermediaries, and investors to uncover the inner workings of this shadow fleet and the individuals who are profiting from it.

At the heart of this network are the aging oil tankers, many of which are over 30 years old and are no longer deemed seaworthy by Western standards. These vessels, which were once considered obsolete and destined for scrap yards, have now found a new lease on life under the control of Russian operators. With the help of these tankers, Russia has been able to maintain its status as the world’s second-largest oil exporter, despite facing sanctions from the United States and the European Union.

The process of acquiring these aging tankers is a complex one, involving a web of intermediaries and shell companies to conceal their true ownership. These intermediaries, often based in offshore tax havens and serve as a shield for the Kremlin and its sanctioned entities, allowing them to continue their operations without being directly linked to the tankers. This elaborate web of companies and individuals helps to create a sense of deniability for the Russian government, shielding them from further sanctions and avoiding any potential backlash from the international community.

However, it’s not just the Russian government and its sanctioned entities that are benefiting from this network. Many companies and investors are also cashing in on the profits generated by the shadow fleet. These companies, often act as intermediaries between Russian operators and Western customers, taking a cut of the profits in the process. This lucrative business has become a major source of income for these companies, who are willing to turn a blind eye to the questionable origins of the tankers they are dealing with.

While this shadow fleet has been successful in helping Russia to continue its oil exports, it has also raised concerns about the safety and environmental impact of using such aging vessels. The risk of oil spills and accidents is significantly higher with these aging tankers, which can have serious consequences for the environment and marine life. Furthermore, the operation of these vessels also poses a risk to the safety of the crew members, who often work under unsafe conditions for long periods of time.

In conclusion, the use of aging oil tankers by Russia has become a crucial part of their strategy to bypass Western sanctions and maintain their status as a major oil exporter. This shadow fleet, made up of a complex network of traders, intermediaries, and investors, has allowed the Kremlin to continue its operations and generate significant profits, while also raising concerns about safety and environmental impact. As long as the demand for Russian oil remains high, it is likely that this shadow fleet will continue to play a key role in the country’s economy, despite its controversial methods.