This year, fewer tankers have joined what’s known as the “shadow fleet” compared to previous years, as Western countries ramp up sanctions against Russia’s oil exports. The harshest restrictions yet have made it harder to find tankers willing to carry Russian oil, according to sources in the shipping industry.
The European Union and Britain recently added new sanctions targeting Russia because of the war in Ukraine. Alongside U.S. measures, these sanctions now apply to more than 440 tankers in this shadow fleet. Many of these ships are crucial for moving Russian oil to large buyers like China and India.
The shadow fleet includes older ships with unclear ownership and limited insurance. These tankers often don’t meet the standards expected by major oil companies or many ports. Countries like Venezuela and Iran also use such fleets to avoid Western sanctions, but since the conflict in Ukraine began in 2022, Russia has become a major user. The country depends on oil income to fund its military actions.
Experts estimate there are between 1,200 and 1,600 tankers in this fleet, making up about 20% of the world’s tanker vessels. That number is a big jump from just a few hundred before the war started. But growth in the fleet’s size is slowing as sanctions tighten and authorities watch ship sales more closely.
It’s important to note this figure doesn’t include hundreds of smaller coastal tankers, which mainly serve Russia but do not travel across oceans.
Analysts say regulators are closing in on these risky shipping operations. Still, some operators are willing to take chances because the business can be very profitable. However, many major players avoid the shadow fleet since the ships are often old and lack proper insurance. The people who do join in are usually less experienced, working with vessels others won’t touch.
Meanwhile, the Group of Seven countries have put a cap on the price Russia can get for its oil, making trading even trickier for these tankers.
As sanctions tighten and oversight grows, the shadow fleet faces mounting pressure. Yet, for some, the potential rewards continue to draw them in despite the risks.