Russia has turned to a shadow fleet of 200 to 300 ships to move its crude oil to locations in Asia to get around sanctions. It's a highly lucrative business — and more could easily be lured into joining.
Oil tankers are seen at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11. This is one of the largest facilities for oil and petroleum products in southern Russia.Oil tankers are seen at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia, on Oct. 11. This is one of the largest facilities for oil and petroleum products in southern Russia.
Broekhuizen says the use of shadow fleets is common practice and has long been used by Iran and Venezuela to avoid Western oil sanctions. "A ship, it could change its name. It could change its ownership while in transit," he says."So you can have a vessel arrive in a port with a certain name, and by the time it reaches [another] port, it could be in the same vessel with a different name and a different owner."Or they could surreptitiously move oil through ship-to-ship transfers in the middle of the ocean.
Karatzas says shadow fleet tankers tend to be old and junky. But since the start of the Ukraine war, they've become highly valuable because of the cargo. "And suddenly the Greek tankers say, 'Hang on a second, your cargoes at $70. I can't touch it.' And Russia suddenly has no ships showing up," he says. Greek tankers carry about 70% of the world's crude oil.
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