Financial Times: Russia is creating a shadow fleet to transport liquefied gas, with the help of little-known companies from the UAE

Already last year, Russia began to prepare for new sanctions and began to create a shadow fleet for the transportation of liquefied natural gas (LNG). Suspicious activity was noticed among companies from the United Arab Emirates (UAE), which bought more than 50 old LNG tankers in the second quarter of 2023.

This is reported by the Financial Times newspaper, which spoke with representatives of the shipping industry and consulting companies.

Tankers bought and continue to buy little-known companies about which nothing was previously known. Most of these firms are registered in the UAE, as this country became the center of trade in Russian energy carriers after the start of the Russian Federationʼs war against Ukraine and the strengthening of sanctions. The consulting company Windward told journalists that previously, until the second quarter of 2023, a mass purchase of LNG tankers was rare.

In the analytical company Kpler, which monitors sea freight transport, it is noted that some of the recently acquired tankers are now plying Russian gas transportation routes.

One of the largest shipping brokers of SSY has already seen prices rise for cheaper and older gas carriers that have been pulled from routes due to tighter environmental regulations. SSY believes that these vessels can replenish the shadow fleet of the Russian Federation.

• In June 2024, the European Union approved the 14th package of sanctions against Russia, which includes restrictions on Russian liquefied natural gas. The sanctions impose a ban on its re-export and transit through European ports.
• Russia already has its oil shadow fleet. It appeared after the limit prices for petroleum products exported or originating from the Russian Federation came into effect in February 2023. The USA and the EU later began to identify companies from the UAE, India and Turkey, which helped Russia circumvent these restrictions with the help of old tankers. The Russian Federation successfully circumvents sanctions and continues to earn from oil, skillfully disguising its origin.