Mysterious Russia-Linked Companies Purchase Dozens of Vessels for Russia’s "Shadow Fleet"

Over the past year, little-known companies have bought dozens of vessels capable of transporting liquefied natural gas (LNG), probably for the Russian "shadow fleet", the Financial Times writes.

Industry insiders in the shipping sector report that a group of newly emerged companies, predominantly registered in the United Arab Emirates, have been buying LNG vessels during the last year. This surge in acquisitions has notably increased market prices, particularly affecting the value of older ships.

Kpler, an analytical firm that tracks shipping, has observed that several of the recently acquired tankers are now operating on routes traditionally used for transporting Russian gas.

Since Russia's full-scale invasion of Ukraine in 2022, LNG has become increasingly vital to Russia's wartime economy. In June, the EU enacted restrictions banning the transfer of Russian LNG from large icebreaking ships to smaller vessels at EU ports. This move substantially restricts Russia's ability to distribute its gas worldwide.

Sergey Vakulenko, senior fellow at the Carnegie Endowment for International Peace, emphasized that it was a clear strategic move for Russia to expand its LNG dark fleets, especially under increasing pressure on Russian LNG.

In July 2024, the UK imposed sanctions on 11 oil tankers involved in aiding Russia's export of supplies to customers, including some linked to the “shadow fleet”.