Russian Shadow Fleet Finds New Hotspot For STS Transfers Near Greek Islands

Russian fuel cargoes are being secretly switched between tankers near the Greek islands of Lesbos and Chios, making it a new hotspot for ship-to-ship (STS) transfers in the Aegean Sea.

Per the analytics firm Vortexa, about 1 million barrels of diesel, fuel oil, and other petroleum products are being flipped in the region every month.

Greek naval drills have disrupted similar operations in the Laconian Gulf, which was the main site for such activities earlier.

The drills began in May and are set to continue until March 2025, have forced Russian-trading tankers to find alternative locations, not only in the Aegean Sea but also off the Italian port of Augusta, the Red Sea and West Africa.

The STS transfers, often carried out in secret by disabling digital tracking systems, help to hide the origin of the oil and bypass Western sanctions imposed after Russia’s invasion of Ukraine.

These sanctions include a $60 cap on seaborne Russian oil, intended to limit revenues for Moscow’s war efforts.

Yoruk Isik, head of the Bosphorus Observer consultancy, called the activities near Lesbos a new development. He said Russian operators use the region strategically because of its calm seas and proximity to major shipping routes like the Dardanelles.

Isik is concerned about the safety of these operations. He describes these vessels as old and potentially dangerous, saying that “these fly-by-night crews and tankers pose significant risks,” and questions their insurance coverage.

He also urged for a joint Turkish-Greek effort to stop these risky transfers.

Despite the disruption in the Laconian Gulf, limited transfers continue in a narrow stretch of water unaffected by the drills.

Tracking data shows that shadow fleet vessels are increasingly active, not only in the Aegean but also near Italy’s port of Augusta.

The shadow fleet made up of older vessels managed by shell companies to hide Russian ties, has been linked to accidents. In March 2024, a tanker named Andromeda Star collided with another vessel near Denmark’s Jutland, and in May 2023, the Canis Power nearly ran aground in the Danish Straits.

Russia’s energy exports have been rerouted to countries in Asia and Africa that do not enforce sanctions, with STS transfers complicating efforts to trace the cargo’s origin.

Per LSEG data, at least seven tankers carrying 123,000 tonnes of diesel and gasoil were loaded in Russia’s Black Sea ports and transferred near Chios in July alone.

Greek authorities plan to crack down on risky STS transfers. Environmentalists and maritime experts continue to warn over the risks posed by these covert operations.

References: Bloomberg, Newsweek

Source: Maritime Shipping News