European and American shipowners have sold at least 230 old oil tankers to the “shadow fleet” used by Russia to circumvent Western sanctions on its oil exports, allowing it to continue financing its war against Ukraine, according to an international journalistic investigation republished by The Guardian.
Since February 2022 (the year of Russia’s invasion of Ukraine), the shipowners have earned over $6 billion by selling their vessels through third-party countries such as India, Hong Kong, Vietnam, and Seychelles, which do not participate in Western sanctions against Moscow.
The Greeks have sold the most (127), followed by the British (22), Germans (11), and Norwegians (8). These ships, which would otherwise have been scrapped, were sold at very high prices.
The “shadow fleet” is used to transport oil at prices higher than the West’s, thereby financing the war.
A notable example is Greek shipowner Paris Kasidokostas-Latsis and his company, which sold two tankers for $84 million years ago. He had purchased the tanks for $50 million. The ships were sold to a company in Vietnam.
Over a third of the “shadow fleet” consists of ships previously owned by Western shipowners—the same countries that have imposed sanctions on Russia. Greece, Cyprus, and Malta have occasionally blocked EU efforts to sanction companies involved in such practices.
In addition to transporting oil, the fleet is used for espionage and to sabotage infrastructure, such as underground cables in the Baltic.
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