Heightened Concerns About the Shadow Fleet and Its Impact on the Oil Market
Oil and Petrochemicals

Heightened Concerns About the Shadow Fleet and Its Impact on the Oil Market

منبع تصویر: dw.com

By 2 min Read time 70,601

Russia's shadow fleet, which has been employed since the country's full-scale invasion of Ukraine to bypass Western sanctions and transport oil worldwide, has created serious concerns in the transportation industry. This fleet consists of old, uninsured, and poorly maintained tankers and is rapidly expanding.

Shadow Fleet's Evasive Tactics

These tankers often use deceptive methods such as turning off positioning identification devices to evade detection and conceal the true origin or destination of their cargoes. Estimates indicate that this fleet now accounts for nearly 19% of the global tanker capacity.

Reactions to Sanctions and U.S. Policies

To counter this fleet and reduce Russia's oil revenues, the United States and European countries have intensified their efforts to stop tankers accused of violating sanctions. However, reports suggest that the Trump administration may reduce sanctions against some of the shadow fleet's tankers, allowing them to transport oil that is not under sanctions.

This move could negatively impact the effectiveness of the sanctions regime and help Russia generate revenues to continue its attacks on Ukraine. Experts believe this decision could strategically put the United States and the European Union at odds.

Europe's Role in Managing the Shadow Fleet

If the United States retreats from its sanctions on the shadow fleet, the responsibility will shift to European policymakers. However, Europe has tools at its disposal that can help mitigate the impacts of this fleet, including requiring tankers to have valid insurance when passing through European waters.

Nevertheless, Russia has threatened to attack vessels belonging to European countries if its tankers are seized and inspected. Experts believe that even if the United States relaxes some restrictions, the European Union will still be compelled to continue enforcing sanctions against these ships.

Source: dw.com