All news
FT: Russia increases 'shadow fleet' of tankers by 70%
Russia has increased the size of its shadow tanker fleet by almost 70% year-on-year, despite a recent crackdown on Western insurers and shipping companies, according to the Financial Times.
The volume of Russian oil transported by these tankers increased from 2.4 million barrels per day in June 2023 to 4.1 million barrels per day in June 2024.
This comes despite efforts by the US, Canada, Japan and the EU to tighten requirements on global insurers and shipowners to curb Russian profits. Western countries have been adding companies and private vessels linked to Russia’s shadow fleet to their sanctions lists.
Analysts say the sanctions against oil tankers have been effective, but the campaign has been too limited to rein in Russia's shadow fleet.
In June 2024, 70% of Russia's seaborne oil was carried by the Shadow Fleet, which Russia spent about $10 billion to build. That's 89% of Russia's total crude oil supply. Most of it was trading above the $60-a-barrel price ceiling.
According to the newspaper, the fleet uses an anonymous ownership structure, which often involves multiple intermediaries, including British accountants and Dubai-based companies hiding behind a corporate structure.