(Brussels) – The European Parliament has called for stricter measures to combat Russia’s use of a shadow tanker fleet to evade sanctions, underscoring the urgent need to cut off revenues funding the Kremlin’s war in Ukraine.
In a resolution adopted on November 14, 2024, the European Parliament demanded tougher action against Russia’s fleet of approximately 600 tankers. These vessels, operating outside standard maritime regulations, allow Moscow to circumvent G7-imposed oil price caps and continue selling crude oil at higher market rates.
The shadow fleet, largely comprising older vessels linked to international shipping companies, has generated billions of euros in additional revenue for Russia, undermining Western sanctions designed to limit funding for its military operations in Ukraine.
Under the G7 price cap mechanism, shipping companies can only transport Russian oil using Western services if it is sold at or below $60 per barrel. Despite this restriction, Russia’s shadow fleet has helped the country realize an estimated $8 billion in additional revenue in the first nine months of 2024 alone, selling oil at approximately $8–$10 above the cap.
A significant portion of Russia’s oil exports—62% of crude oil—now relies on shadow fleet operations, according to research from the Center for Research on Energy and Clean Air.
| Key Issue | Details |
|---|---|
| Shadow Fleet Size | Approximately 600 tankers circumventing sanctions, using older and unregulated vessels. |
| Revenue Generated | Estimated $8 billion in additional revenue from January to September 2024. |
| EU Response | 27 vessels designated under sanctions; calls for more aggressive measures to curb activities. |
The European Parliament’s resolution warns of the environmental and safety risks posed by these unregulated tankers. Many lack proper insurance, operate in poor condition, and frequently turn off tracking systems, increasing the likelihood of accidents or oil spills, particularly in the Baltic and Mediterranean seas.
MEPs have urged for a comprehensive ban on uninsured tankers and tighter port inspections to ensure compliance with international maritime standards. The resolution also calls for increased surveillance by the European Maritime Safety Agency, including satellite monitoring, to track shadow fleet movements and crack down on illicit ship-to-ship transfers, often used to obscure the origins of Russian oil.
Geopolitical Challenges
The Parliament’s demands come amid growing concerns about enforcement difficulties. The European Commission, tasked with implementing sanctions, has struggled to ensure compliance due to the fleet’s evasive tactics and the complexity of verifying oil prices and transaction records.
Jonas Sjöstedt, a Swedish MEP who led the drafting of the resolution, emphasized the high stakes: “This shadow fleet enables Russia to finance its war in Ukraine. Every tanker evading sanctions prolongs the suffering of the Ukrainian people. We must act decisively.”
| Major Concerns | Details |
|---|---|
| Environmental Risks | Aging tankers pose risks of oil spills, particularly in congested and environmentally sensitive waters. |
| Baltic Sea Pathway | Primary route for shadow fleet; tankers navigate through Danish straits to international waters. |
| Black Sea Operations | Vessels use Turkish straits to access global markets, employing complex routes to avoid detection. |
Global Collaboration Needed
The resolution also highlights the importance of diplomatic outreach to countries hosting these tankers, such as China, India, and Türkiye, urging cooperation in enforcing sanctions.
Furthermore, the Parliament recommends emulating stricter U.S. sanctions policies and expanding blacklists to include the financial entities and operators associated with the shadow fleet.
While the European Parliament’s resolution reflects strong political will, it is not legally binding. Implementation rests with the European Commission, which must balance member states’ energy concerns and the broader enforcement of sanctions.
Despite the challenges, Sjöstedt remains optimistic: “We are putting political pressure on the Commission and member states to act by proposing new measures. Time is critical, and we cannot allow loopholes to persist.”
Additional Sanctions Sought
The resolution also addresses gaps in the EU’s energy sanctions framework, advocating for a complete ban on Russian fossil fuel imports, including liquefied natural gas (LNG). While the EU has banned Russian coal and seaborne crude oil imports, LNG imports have increased, offsetting reductions in natural gas supplies.
“Even Sweden, my home country, still imports LNG from Russia, even though alternatives exist,” Sjöstedt said. “It’s about time we banned LNG imports as well.”
The shipping industry remains divided on the issue. Critics argue that sanctions have fragmented global maritime safety standards, while proponents stress that the real danger lies in the unregulated operations of shadow fleet tankers.