Ukraine war: Russia’s ‘ghost fleet’ is helping Moscow successfully skirt oil sanctions

A ‘ghost fleet’ is defined as commercial vessels not owned by G7 countries in the coalition with the EU, or do not use protection and indemnity insurance

One economist estimates 70 per cent of Russian oil transported by sea uses a ghost fleet, in an effort to escape oil sanctions imposed since it invaded Ukraine

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A tanker is moored at a crude oil terminal near the port city of Nakhodka, Russia. Moscow has been able to skirt sanctions on its oil thanks to its “ghost fleet”. Photo: Reuters Photo: Reuters

Published: 5:59pm, 1 Feb 2024

Since Russia invaded Ukraine in February 2022, the number of oil tankers with opaque ownership or without proper insurance has soared.

Experts say that has allowed the Kremlin to build a shadow or so-called ghost fleet to export its oil despite a Western-imposed embargo and price cap on its global sales.

The Kyiv School of Economics (KSE) defines a “ghost fleet” as commercial vessels that are neither owned by countries in the G7 coalition with the European Union, or that do not use protection and indemnity (P&I) insurance.

“It is not unusual, even before the war,” said KSE economist Elina Robakova.

“The shadow fleet is also used to avoid the normal business model” such as high insurance costs, she said.

Such ships, also called “dark fleets”, are also used by countries such as Iran and Venezuela, which are both under US oil sanctions, and even North Korea, said Atlantic Council researcher Elisabeth Braw.