EU countries want to step up measures against Russiaʼs shadow fleet and are developing a plan to combat it, which includes mass arrests of tankers transporting oil in the Baltic Sea.
Politico reports this, citing two EU diplomats and two government officials.
New legislation is being developed to provide legal grounds for the arrest of Russian tankers. Options are also being considered to apply international law to detain vessels on the grounds of environmental threats or suspicions of piracy.
Countries could act independently by enacting their own national laws that would allow them to seize Russian ships. They could require tankers in the Baltic Sea to use a set list of reliable insurers, which would allow countries like Estonia and Finland to detain ships, as Russian tankers typically do not have the necessary insurance.
However, Politico writes that implementing these plans will not be easy. It is easier to arrest ships in territorial waters, while in international waters different laws apply — here a ship can only be detained under certain conditions, for example, if it poses a threat to the environment or security.
Russia could respond with military escorts of its tankers, escalating the conflict. Countries that seize ships could also face lawsuits and large financial costs as they would have to secure the seized tankers.
European countries want to step up seizures of Russian ships as Russia continues to evade sanctions by using a shadow fleet — mostly old tankers with opaque owners and no insurance — that allows Moscow to earn billions in oil revenues to finance its war against Ukraine.
In 2023, 348 shadow fleet vessels left Russian ports in the Baltic Sea, accounting for 40% of Russia’s total oil sales—an amount roughly equal to a third of Russia’s annual military budget.
In addition, these old ships pose a risk of environmental disasters in the Baltic Sea because they do not meet safety standards.
There are also suspicions that Russian tankers may be involved in attacks on European underwater infrastructure, as happened in the case of damage to the cable between Estonia and Finland.
“About 50% of the sanctioned Russian oil trade goes through the Gulf of Finland. There are environmental threats, attacks on our underwater infrastructure. Now the question is what can we do with these ships? We cannot block the sea, but we can take control of more processes. We have many opportunities,” said Estonian Foreign Minister Margus Tsahkna.
What is known about the Russian shadow fleet?
In early December 2022, the G7 members, as well as Australia and the EU, imposed price caps on Russian oil, setting a maximum price of $60 per barrel. From February 5, 2023, these countries imposed price caps on Russian petroleum products: $100 for diesel fuel, $45 for various lubricants.
To circumvent oil sanctions, Russia has begun to form a shadow fleet. In July, British Prime Minister Keir Starmer announced the suppression of Russiaʼs so-called shadow fleet of oil tankers, which helps it circumvent sanctions. At that time, under the leadership of the United Kingdom, 44 European countries and the European Union agreed on new sanctions. The United States and Canada later joined the program. Since then, countries have periodically updated sanctions against the Russian shadow fleet and added new tankers to the sanctions list.
At the same time, Prime Minister Starmerʼs Office noted that some of the shadow fleet ships function as Russian listening stations, while others transport weapons to Russia.
In July, Keir Starmer said that Russia’s shadow fleet consists of almost 600 ships and represents about 10% of the world’s “wet cargo” fleet. With its help, Russia transports about 1.7 million barrels of oil per day, which brings large profits to the Kremlin.
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