Title: Almost Disastrous Encounter: The Unseen Russian Shadow Fleet
The grounded oil tanker "Eventin" in the Baltic Sea raises concerns about Russia's questionable maritime fleet. With the Ukraine conflict, incidents involving this fleet have increased. Ships like "Eventin," often sailing under foreign flags and with questionable ownership, often lead to troubling events – even suspected sabotage.
This shadow fleet carries about 70% of Russia's seaborne oil exports, according to an estimate by the Kyiv School of Economics. The "Eventin," listed among 192 rundown ships, was carrying nearly 100,000 tons of oil when intercepted off Germany's coast.
Ships in this fleet often lack sufficient insurance, posing significant risks. For instance, the 15-year-old "Andromeda Star," sailing under the Panamanian flag, was added to the EU sanctions list in June 2024. It now circulates between the Russian and Indian ports, refining oil legitimately but free from sanctions.
Every day, about three fully-loaded shadow tankers leave Russian ports, estimates the Center for Research on Energy and Clean Air (CREA). To transport oil from Baltic to distant ports, the freighters must largely skirt Europe, passing through perilous waterways. According to KSE analysis, 90 million barrels of oil were shipped through European waters alone in the first half of 2024.
A recent example in Denmark illustrates the risks of navigating these busy and challenging waters – the "Canis Power" tanker nearly ran aground while crossing the narrow straits connecting the North and Baltic Seas. The ship, flying the Cook Islands flag, is now also under EU sanctions.
MEASURES TO COMBAT SANCTION CIRCUMVENTION
Since 2024, the EU has implemented multiple strategies to regulate and prevent Russia's shadow fleet from circumventing sanctions. This includes:
- Imposing sanctions on vessels
- Asset freeze measures
- Tightening export controls
- Enhancing maritime inspections
- Implementing an oil price cap
- Legally protecting EU central securities depositories
- Establishing divestment wind-down periods
- International coordination
These measures aim to reduce the shadow fleet's operational capabilities, mitigating both sanction circumvention and associated environmental and safety risks.
The lack of adequate insurance for ships in Russia's shadow fleet significantly amplifies risks, as demonstrated by the 15-year-old "Andromeda Star," which continued operations despite being added to the EU sanctions list. The "Eventin," despite being intercepted carrying nearly 100,000 tons of oil, continues to sail within this risky shipping environment, requiring close monitoring and implementation of measures to combat sanction circumvention.
