Russia’s Shadow Fleet Grows to 1,000 Vessels, Facilitating Oil Exports Amid Sanctions

The fleet transporting Russian oil to bypass sanctions currently consists of up to 1,000 vessels, RBC-Ukraine reported on February 3, citing its own sources in the Main Directorate of Intelligence of the Ministry of Defense of Ukraine (HUR).

“Currently, Russia’s shadow fleet  consists of up to 1,000 mostly outdated vessels (with a total deadweight of over 100 million tons) that carry out the export of oil and petroleum products. In 2023, their number was around 600,” HUR stated.

The news agency added that since the implementation of the price cap on Russian oil in December 2022, Russia has spent over $10 billion on purchasing tankers.

“These vessels account for the export of approximately 70% of Russia’s crude oil and petroleum products transported by sea,” said the military intelligence.

According to HUR, the majority of tankers in the shadow fleet are registered under the flags of Panama, Gabon, the Cook Islands, Liberia, the Marshall Islands, and others. On the other hand, the owners are registered in China, India, the Marshall Islands, the Seychelles, the UAE, Greece, and several other countries.

There is not only a supply of such oil but also a demand. According to the HUR, some countries are interested in importing Russian oil for refining and exporting the finished petroleum products to external markets. These include countries like China, India, and Turkey. Additionally, the sale of petroleum products made from Russian oil is not subject to restrictions.

On January 20, Indian banks reportedly began halting payments for Russian oil due to tightened US sanctions, posing obstacles for Russia’s energy sector.