EU cracks down on Russia's elusive shadow oil fleet
The European Parliament voted on a resolution Thursday urging the European Union to impose more effective sanctions on the Russian "shadow fleet." This term refers to ships that secretly transport oil despite existing restrictions, and the revenue from its sale provides Vladimir Putin with funds for the war against Ukraine.
Since Russia's full-scale invasion of Ukraine began, the European Union has implemented 14 sanction packages against the Russian Federation. Four of these focused on oil, covering its purchase, sale, and import by sea. The restrictions also targeted the so-called shadow fleet, a fleet of old tankers used by the Kremlin to circumvent sanctions.
Despite these measures, Russia continues to use about 160-200 ships per month for oil transport. Approximately 10 billion dollars was spent on expanding the "shadow fleet," which now numbers around 600 tankers.
At Thursday's plenary session in Brussels, Members of the European Parliament (MEPs) called for additional EU sanction packages against Russia to curb illegal oil trading more effectively.
Actions against the "shadow fleet" are expected to include imposing restrictions on specific ships and on their owners, operators, managers, accountants, banks, and insurance companies involved in the practice. MEPs noted that, so far, the EU has only listed 27 units on the sanctions list. In contrast, the UK has already imposed sanctions on 18 Russian tankers and four LNG carriers.
Dangerous operations of the "shadow fleet" in the Baltic Sea
MEPs also demanded regular penalties for ships sailing in EU waters without valid insurance. Russia's tankers used for oil transport are often so old that they are no longer fit for service and, therefore, lack standard industry insurance. Their poor condition further increases the risk of maritime collisions and catastrophic oil spills.
Russian shadow tankers frequently transfer oil and oil products "hull to hull," particularly in the Mediterranean and Baltic Seas. By not docking in ports, they can obscure the origin of the oil, although this poses a significant environmental disaster risk.
Therefore, the European Parliament called on the EU to enhance its oversight of waters, particularly by monitoring with drones and satellites and conducting regular sea inspections. The Parliament also urged member states to designate ports capable of handling units transporting oil and liquefied natural gas (LNG) under sanctions and to take over illegal cargo.
Russia sent scrap to the Baltic Sea
These are not the only proposed restrictions. The European Parliament also urged the Union and member states to ban the import of all Russian fossil fuels, including LNG. As politicians argued, as long as the EU continues to import gas or coal from Russia, the sanctions on the Russian Federation and support for Ukraine will be undermined.
The European Parliament additionally demanded that the EU penalize third countries aiding Russia in circumventing sanctions and called on the G7 countries to enforce better the price cap imposed on Russian oil, reduce its prices, and close legal loopholes allowing Moscow to repackage and sell oil and oil products at market rates.
According to European Parliament data, the "shadow fleet" movement increased significantly in 2024, with the number of trips made by Russian tankers more than doubling. A significant amount of Russian oil is transported along busy international shipping routes, originating from ports in the Baltic and Black Seas.
