EU, US Shipowners Made $6 Billion Selling Tankers To Russia’s Shadow Fleet

An investigation has revealed that US and European shipowners sold at least 230 old tankers to Russia’s “shadow fleet,” which helps Russia evade sanctions on oil exports. These sales have earned more than $6 billion since Russia invaded Ukraine in 2022.

Greek shipowners sold the most tankers, totalling 127 vessels, while companies from the UK, Germany, and Norway sold smaller amounts. The ships sold are now used to transport Russian oil and even engage in espionage activities.

Despite new EU rules introduced in late 2023 to prevent sanction evasion, 32 European-owned tankers were still sold to the shadow fleet. Around 70 tankers have been sanctioned by the EU for transporting Russian oil, and more are expected to be sanctioned soon.

The “shadow fleet” comprises around 600 ships, which Western shipowners are selling to shell companies that then end up operating under Russian control. This network allows Russia to continue its oil exports despite sanctions.

These ships are often old, aging tankers, which Western owners are selling at high prices. The total amount earned from these sales has reached over $6.3 billion.

A tanker sold by Greek company Tsakos Energy Navigation, the Aris, was sold to a buyer registered in the Marshall Islands. It was renamed Canis Power and started transporting Russian oil.

This type of indirect sale is not prohibited, as ships can be sold to countries that are not participating in sanctions. The ship was then resold again in a few weeks and ended up in the shadow fleet.

The sales are legal because they are not directly to Russian companies but to companies in countries that do not enforce sanctions.

For instance, ships are sold to firms in countries like India, Vietnam, Hong Kong, or the Seychelles.
Some ships are sold multiple times through different countries before they end up in the shadow fleet, thus avoiding detection and sanctions.

The Greek companies have been the largest beneficiaries of this market, earning $3.7 billion. Other companies from the UK, Germany, and Belgium have also sold vessels.

One Greek shipping company, Marla Tankers, sold two oil tankers in 2024 for $84 million, which later ended up transporting Russian oil. Other prominent Greek firms like Toro Corp and Prime Marine have also been involved in selling ships that went to the shadow fleet.

EU regulations have required European shipowners to notify authorities when selling vessels to buyers outside the EU, but these authorities cannot block the sales. The EU hopes this rule will make companies think twice before selling to companies that might circumvent sanctions.

However, despite these regulations, several tankers have still been sold, and the EU continues to work on actively countering the shadow fleet.

The shadow fleet now plays a significant role in sustaining Russia’s oil revenue, which helps fund its war effort against Ukraine. Since the beginning of the full-scale invasion in 2022, Russia has earned over 800 billion euros from fossil fuel exports.

The shadow fleet’s ships are old and lack modern maintenance, making them more prone to accidents and environmental risks.

Western governments, including the US, UK, and EU, have sanctioned around 300 tankers, with 155 tankers sanctioned by the US in January 2025.

However, the enforcement of sanctions has been inconsistent, especially as some EU member states like Greece, Cyprus, and Malta rely heavily on the shipping industry for revenue. These countries have expressed concerns about stricter sanctions enforcement and its impact on their economies.

For example, Cyprus has stated that it will support stricter sanctions only if it is compensated for the lost revenue from the shipping industry.

Despite these challenges, the EU continues to push for stronger actions against the shadow fleet, hoping that the sanctions will eventually make it harder and more expensive for Russia to continue its oil exports.

References: Newsminimalist, occrp

Source: Maritime Shipping News