Sanctioned Shadow Fleet Tanker To Be Demolished In Alang, Arrested In India

The Comoros-flagged tanker Conico Atlas, part of Russia’s shadow fleet, was sold for scrap at the beginning of 2025.

It was arrested in India after a failed transaction and claims by the buyer that the ship was sanctioned and misrepresented when it was being sold.

The tanker was prohibited from entering India’s Vadinar Port and was then sold for demolition. It arrived at the Alang shipbreaking yard in June this year.

A petition filed by Global Maritime has stopped its scrapping as the company wants to void the contract and get its advance payments.

It is alleged that the tanker’s registered owner, Tachio Trading, did not reveal that the ship had been sanctioned when they signed the deal.

A 10% deposit was transferred, and then the purchaser signed a deal with an Indian recycler
Shri Gautam Ship Breaking for demolishing the ship.

The customs duties, port charges, and letter of credit were also paid before the beaching process.

When Global Maritime tried to make the final payment through the Mashreq Bank, the transaction was blocked, and the companies were notified that the ship was under sanctions, flagged by authorities in the UK, EU, Australia, Canada, Switzerland and New Zealand.

According to court filings, the ship’s owner refused to acknowledge the sanctions and attempted to pressure the buyer into completing the transaction.

Global Maritime now seeks to get all agreements declared null and void and wants a money decree with interest.

BRS Shipbrokers said that it is difficult for tankers to leave the grey fleet unless sold to another grey fleet operator.

Most cash buyers and recycling yards deal in U.S dollars, excluding them from the U.S banking system if the U.S government acts against such transactions in future.

A few recycling yards which face a shortage of tonnage can take on grey tankers, typically at discounted prices.

Data shows that 15 grey tankers were scrapped between 2024 and 2025, with 8 linked to direct or indirect sanctions.

This allows grey fleet owners to offload problematic or low-value ships.

As global demolition languishes in the doldrums, this explains why some breakers accept grey tonnage, but if demolition of other kinds of ships were to increase, then breakers would not accept a lot of grey tonnage due to the risks involved.

Source: Maritime Shipping News