Sanctions Lead to Rise in Russia's "Ghost Fleet" of Oil Tankers

RURussian Federation|

The shadowy network of oil tankers known as Russia's "ghost fleet" has come under renewed scrutiny as Western sanctions intensify against Moscow's energy sector. Since Russia's invasion of Ukraine in February 2022, the number of oil tankers operating under obscure ownership or lacking proper insurance has surged, facilitating ongoing crude exports from Russia.

On Friday, the United States and the United Kingdom announced fresh sanctions aimed at crippling Russia's oil industry. The U.S. designated over 180 vessels and major Russian oil companies Gazprom Neft and Surgutneftegas as targets of these measures. The accompanying UK sanctions echoed these concerns.

A report from the Atlantic Council noted that previous sanctions targeting individual ships have had limited impact on reducing the size of the shadow fleet. Defined as vessels not owned by G7 countries or lacking sufficient protection and indemnity insurance, the ghost fleet has become central to Russia's efforts to bypass sanctions, joining similar tactics previously employed by countries like Iran and Venezuela.

The Kyiv School of Economics reported that approximately 17% of all oil tankers are now part of this shadow fleet. While Russian oil revenues decreased by $1.1 billion in November due to dropping prices and export volumes, the report highlighted the need for enhanced international cooperation to enforce sanctions and close legal loopholes that allow this fleet to operate.

Major risks associated with the ghost fleet include a lack of adequate insurance, which is critical for covering potential accidents or environmental damages. European Union and UK insurance markets account for about 95% of commercial P&I insurance, making the ghost fleet vulnerable but still operational due to Russia's efforts to establish independent maritime routes.

As the sanctions continue to evolve, the situation underscores the complex dynamics of global oil markets and the lengths to which Russia is willing to go to sustain its crude exports amidst international pressures.

Weekly Newsletter

Loading...

More from Russian Federation

Ukraine Drone Strike Causes Casualties in Russia's Kursk Amid Ongoing Conflict

A drone attack in the Russian city of Kursk resulted in the death of an elderly woman and injuries to nine others, local authorities reported on April 15, 2025. According to the Kursk regional government’s statement on Telegram, the strike generated significant explosions and fires in multiple apartment blocks, prompting evacuations and a subsequent alert for missile and drone attacks. The deceased was identified as an 85-year-old woman, with the injured suffering from various conditions including shrapnel wounds and burns, officials stated. The attack occurred as residents of Sumy, Ukraine mourned after a lethal strike in their city, which reportedly killed 35 individuals. The conflict between Russia and Ukraine has escalated in recent months, leading to increased hostilities and civilian casualties. Pro-Kremlin media outlet Izvestia highlighted the rising tensions, calling the attack on Kursk a "massive enemy attack." This incident underscores the ongoing violence experienced by civilians amid the enduring conflict, raising concerns over further escalations.
RURussian Federation

U.S. Envoy Meets Putin in Moscow to Discuss Ukraine Ceasefire

U.S. special envoy Steve Witkoff met with Russian President Vladimir Putin in Moscow on Friday, focusing on negotiations aimed at resolving the ongoing conflict in Ukraine. The discussions lasted over four hours, according to reports by Russian news agencies. The Kremlin officially confirmed the meeting, stating it addressed various aspects of a potential settlement regarding Ukraine. The meeting took place at the presidential library in St. Petersburg, where both leaders were photographed shaking hands. Witkoff, who has served as President Donald Trump's envoy for the Middle East, has recently been more involved in Russian affairs. Reports indicate that following the talks, he left the venue while Putin’s investment envoy Kirill Dmitriev returned to his hotel. This engagement highlights ongoing efforts to negotiate a ceasefire amid the escalating tensions in the region, as the international community closely watches for developments. Military support to Ukraine remains a point of contention, with the UK recently pledging $580 million in assistance.
RURussian Federation

Vladimir Putin’s Limousine Catches Fire Near FSB Headquarters in Moscow

A luxurious Aurus limousine belonging to Russian President Vladimir Putin exploded near the FSB headquarters in Lubyanka, Moscow, on March 30, 2025. Eyewitnesses reported that a fire erupted from the vehicle's engine and spread rapidly throughout the interior. Workers from nearby bars rushed to assist before emergency responders arrived on the scene, according to video footage circulating online. The Aurus limousine is managed by the President Property Department, which oversees transportation for the Russian president. The cause of the fire is currently unknown, and it remains unclear whether anyone was inside the vehicle at the time of the incident. The explosion comes amidst remarks by Ukrainian President Volodymyr Zelensky, who recently suggested that Putin's potential death could help conclude the ongoing conflict between Russia and Ukraine. As reported by The Kyiv Independent, this statement was made during an interview in Paris on March 26, amid rising speculation regarding Putin's health status. The ongoing conflict, which began with Russia's invasion of Ukraine in February 2022, has resulted in significant military engagement and territorial occupation.
RURussian Federation
All Russian Federation News ->