Russia operates approximately 17% of all active oil tankers worldwide through its “shadow fleet,” according to analysis published by The New York Times.

The 940 aging vessels allow Moscow to sidestep Western sanctions and keep war funding flowing.

The fleet has exploded in size—up 45% in just one year, according to S&P Global Market Intelligence data cited by the Times. These aren’t legitimate commercial operations. They’re Moscow’s workaround.

How Russia avoids shadow fleet restrictions

Here’s how it works: Ships use sketchy insurance or sail without coverage entirely. They fly flags from third countries. Most importantly, they transmit false location data to hide where they loaded Russian crude.

“The sanctions don’t put them out of business,” maritime security expert Ian Ralby told the Times. “They put them out of legitimate business.”

The fleet emerged after Europe banned Russian seaborne oil imports in late 2022 in response to its full-scale aggression in Ukraine.

Moscow suddenly needed India and China to buy its oil instead of European customers. Those longer shipping routes to Asia required more vessels. Russia also wanted to dodge the $60-per-barrel price cap imposed by the G7, European Union, and Australia. The EU and Britain have since dropped that ceiling even lower.

The deception creates what the Times calls “plausible deniability” for oil buyers who can claim they didn’t know the cargo’s true origin.

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Environmental and security threats of shadow fleet

However, this system poses significant environmental risks, according to experts quoted by the Times. The shadow fleet vessels average 20 years in age, compared to 13 years for the global oil tanker fleet broadly.

“Lack of insurance combined with the really old vessels — this just increases the risk of environmental catastrophe,” Natalia Gozak, office director of Greenpeace Ukraine.

Western intelligence also suspects some vessels of underwater sabotage against pipelines and cables.

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Western enforcement response

In response, Western nations have intensified enforcement efforts. The European Union has placed more than 500 shadow fleet ships on sanctions lists as of its latest announcement, while the United States, Britain, Canada, and Australia are also targeting these vessels.

Commission President Ursula von der Leyen announced in August that the EU would adopt its 19th sanctions package against Russia in September. The package was expected on 17 September, but Brussels postponed its presentation.

However, the ships continue finding workarounds, including transferring cargo at sea and “flag hopping” by changing registrations to conceal identities.

Ben Harris, a former Biden administration Treasury official who helped architect the price cap, acknowledged the system’s imperfections while arguing that sanctions still impose costs on Russia through expensive shipping routes and fleet construction.

European Commission President Ursula von der Leyen has presented the EU’s proposed 19th package of sanctions against Russia, focusing on energy, finance, and military-linked technology. The measures must still be adopted unanimously by EU member states.

Energy: “It is time to turn off the tap”

According to the European Commission, von der Leyen announced a full ban on Russian liquefied natural gas imports.

“Russia’s war economy is sustained by revenues from fossil fuels,” she said.

Rosneft and Gazpromneft would face full transaction bans, and 118 new vessels from Russia’s shadow fleet would be blacklisted.

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The package also includes penalties on oil buyers in third countries, including China.

“We are now going after those who fuel Russia’s war by purchasing oil in breach of the sanctions,” she stated.

Finance: crypto and banks under new restrictions

The EU would impose a transaction ban on more Russian banks and banks in third countries. For the first time, crypto platforms would be sanctioned. Transactions in cryptocurrencies and with entities in special economic zones would be restricted.

Military tech and indoctrination networks targeted

The proposal includes new export bans on items used on the battlefield, and sanctions on 45 companies supporting Russia’s military-industrial complex. Individuals involved in the indoctrination of abducted Ukrainian children would also be sanctioned.

Economy under pressure

“Our economic analysis is clear – our sanctions are severely affecting Russia’s economy,” von der Leyen said. She pointed to a 17% interest rate and high inflation. “Among the first Russian requests is, sanctions relief.”

Using frozen assets to fund Ukraine

Von der Leyen said the EU is preparing a plan to use cash tied to immobilized Russian assets to fund a Reparations Loan for Ukraine.

“Ukraine will only pay back the loan once Russia pays reparations,” she said.

Coordination and call to action

The sanctions will align with G7 measures under Canada’s presidency.

“We want Russia to leave the battlefield and come to the negotiating table,” von der Leyen said. “This is the way to give peace a real chance.”

Australia delivers a major blow to Russia’s oil profits. The country has slashed the price cap on Russian oil from $60 to $47.60 per barrel and imposed sanctions on 95 more vessels from Russia’s “shadow fleet.” The decision was coordinated with the EU, UK, Canada, New Zealand, and Japan.

The Australian Foreign Ministry has stated that lowering the oil price cap from $60 per barrel to $47.60 will reduce the market value of Russian crude and help deprive Russia’s war economy of revenue from raw materials.

The government also maintains a total ban on Russian oil and petroleum product imports. More than 150 ships have been sanctioned since June 2025.

Australia tightens grip on Russia’s “shadow fleet”

The latest measures target 95 tankers, with intelligence on 60 vessels provided to international partners by Ukraine’s sanctions group.

“Ukraine has also imposed national sanctions on the captains of 15 of these tankers,” Andrii Yermak, the head of the Ukrainian Presidential Office, reveals.

Ukraine welcomes Canberra’s support

Ukraine’s Foreign Minister Andrii Sybiha has thanked his Australian counterpart Penny Wong for the decision.

“Australia is helping to restrict Russia’s ability to fund its war and undermine global peace. We value our strong partnership with Australia and continue to stand together for shared values,” he said.

A united front to cut the Kremlin’s oil revenues

Australia’s sanctions are part of a wider Western strategy to reduce the Kremlin’s energy income. Partner governments believe that only sustained pressure on Russia’s oil sector can significantly weaken its capacity to fund the war against Ukraine.

US Treasury Secretary Scott Bessent has linked the potential end of Russia’s war in Ukraine to European action against countries purchasing Russian oil.

Speaking in a joint interview with Reuters and Bloomberg on 15 September, Bessent said the conflict could conclude within 60 to 90 days if European nations imposed substantial secondary tariffs on Russian oil buyers because it would eliminate Moscow’s primary revenue source.

Bessent also stated that the Trump administration will not impose additional tariffs on Chinese goods to halt China’s Russian oil purchases unless European countries implement steep duties on China and India.

“We expect the Europeans to do their share now, and we are not moving forward without the Europeans,” he said.

Bessent’s comments follow President Donald Trump’s decision to impose an additional 25% tariff on Indian imports.

During talks with Chinese officials in Madrid focusing on trade and TikTok, Bessent said he informed them that the US had already imposed tariffs on Indian goods and that Trump has been urging European countries to impose tariffs of 50% to 100% on China and India. 

The treasury secretary criticized European countries for continuing to purchase Russian oil directly or buying petroleum products refined in India from discounted Russian crude. 

The treasury chief outlined next steps: stronger sanctions on Russian oil giants Rosneft and Lukoil, plus expanded use of the $300 billion in frozen Russian sovereign assets. Small seizures could start immediately, or the funds could serve as collateral for Ukrainian loans.

Meanwhile, Ukraine took matters into its own hands. Drone strikes in August eliminated four major Russian refineries, wiping out one-seventh of the country’s refining capacity. Gasoline prices surged 40-50% since January. Ukrainian forces also severed the Druzba pipeline, Russia’s main oil export route to Europe, cutting supplies to Hungary and Slovakia.

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Russia’s “shadow fleet” grows again, helping the Kremlin bypass sanctions. The number of Moscow’s oil tankers continues to expand, ensuring deliveries of Russian oil despite Western sanctions, Reuters reports. 

The Russian “shadow fleet” consists of grey-market tankers that evade international sanctions. These tankers often sail with transponders turned off, without proper insurance, and conceal their identities. They channel Russian oil exports to China, India, and Global South countries. 

About 70% of the shadow fleet that transports Russian oil passes through the Baltic Sea.

Shadow fleet keeps Russia’s oil exports afloat

Saad Rahim, chief economist at major trading house Trafigura, says that these tankers have become a key instrument in the Kremlin’s hands. These vessels allow Moscow to maintain revenues from crude oil sales despite Western efforts to restrict exports.

“As there are more sanctions and restrictions, the size of the (shadow fleet) has grown even larger,” Rahim emphasized.

New vessels replace sanctioned ones

According to the expert, in 2025 the growth of the “shadow fleet” has slowed somewhat, but it continues to expand. Often, new tankers replace those that end up on the “blacklist.” This enables Russia to keep its export channels open and avoid significant losses from sanctions.

The US cuts production, price steady at $60

Rahim also stressed that US tariffs have so far had limited impact on the global economy and fuel demand. American oil companies base their budgets on a $60 per barrel price, which is considered the break-even level. At the same time, the number of oil rigs in the country is declining, while production has stabilized at the current level.

Russian President Vladimir Putin dismissed Transport Minister Roman Starovoit on July 7, following a series of high-profile disruptions to Russia's aviation and shipping sectors.

The official decree was published on Russia's legal information portal. No reason was given, but Starovoit's departure comes after nearly 300 flights were grounded at major Russian airports on July 5–6 due to security threats from Ukrainian drone attacks.

Adding to the turmoil, an explosion aboard the Eco Wizard tanker at the Ust-Luga port in Leningrad Oblast caused an ammonia leak on July 6, prompting an emergency response.

Starovoit, sanctioned by Ukraine and Western countries for his role in the war against Ukraine, had served as governor of Russia's Kursk Oblast before being appointed transport minister in May 2024.

According to the Russian state-controlled newspaper Vedomosti, Deputy Transport Minister Andrei Nikitin, a former Novgorod Oblast governor, is a leading candidate to replace Starovoit.

On July 6, the Russian Federal Aviation Agency confirmed that 287 flights were delayed or canceled at Moscow's Sheremetyevo Airport, St. Petersburg's Pulkovo Airport, and Nizhny Novgorod's Strigino Airport due to safety concerns from drone activity.

Kyiv's drone campaign, which has increasingly disrupted civilian air travel in Russia, is part of Ukraine's broader strategy to undermine Russia's logistics far beyond the front line.

Russian authorities said the ammonia leak at Ust-Luga was "minor," but the pro-Kremlin Telegram channel, Baza, reported that an unexplained explosion preceded the incident.

The Eco Wizard tanker is believed to be part of Russia's "shadow fleet" — a network of vessels used to bypass international sanctions on Russian oil and chemical exports. Five tankers have been damaged by explosions at Russian ports since the start of 2025.

The Kremlin has not made a formal statement on the minister's dismissal.

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The Kyiv IndependentTim Zadorozhnyy

An explosion aboard the Eco Wizard tanker in Russia's Ust-Luga port caused an ammonia leak and is under investigation, the Russian Transportation Ministry announced on July 6.

Explosions have damaged five tankers at Russian ports since the beginning of the year.

The Russian Transportation Ministry alleged that "a minor leak of liquid ammonia" occurred at the Ust-Luga seaport in Leningrad Oblast due to "an incident" while unloading and loading the Eco Wizard tanker.

According to the Russian Telegram news channel Baza, "an explosion of an unknown nature" preceded the leak.

The ship's 23-person crew was evacuated and port emergency services are working on site to eliminate the consequences. Loading operations were stopped and emergency rescue services put on high alert. Russian Transportation Minister Roman Starovoit held a meeting on the incident and a diving inspection of the vessel is planned.

No casualties have been reported.

The Eco Wizard tanker arrived in Ust-Luga from Antwerp, Belgium on July 3, according to ship-tracking data from VesselFinder. The vessel was built in 2024 to transport liquefied petroleum gas (LPG) and flies the flag of the Marshall Islands.

The vessel is suspected to belong to Russia's "shadow fleet," a group of tankers Moscow uses to circumvent sanctions.

A week prior to the Eco Wizard explosion, a blast occurred on the shadow fleet tanker Vilamoura shortly after it visited Russian ports. The ship was carrying 1 million barrels of oil at the time of the explosion.

The Eco Wizard is the sixth tanker linked to Russia to have suffered an explosion since the start of this year.

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The Kyiv IndependentThe Kyiv Independent news desk

Russia is making another attempt to expand its exports of liquefied natural gas (LNG) after U.S. sanctions disrupted production at its flagship Arctic LNG 2 plant, Bloomberg reported on June 28.

Arctic LNG 2, owned by the Russian company Novatek, was envisaged as Russia's largest LNG plant and aimed to produce almost 20 million metric tons of LNG per year. The U.S. State Department targeted the Arctic LNG 2 project with sanctions in 2024.

An LNG vessel has reportedly docked at the Arctic LNG 2 facility for the first time since October, according to ship-tracking data and satellite images analyzed by Bloomberg. Data suggests that at least 13 vessels of Russia's "shadow fleet" have been assembled to potentially serve Arctic LNG 2.

These include four ice-class vessels, including the one currently docked at Arctic LNG 2. Three others are idling in the Barents Sea, along with three traditional LNG vessels. Two more vessels are being repaired in China and another two are idled in the Gulf of Finland. One ship is located near a floating storage facility in Russia's Far East.

While pipeline shipments of Russian gas to Europe have declined sharply since the full-scale invasion of Ukraine, Russia's shadow fleet — a group of aging oil tankers used to circumvent global sanctions — continues to grow.

Moscow now has more vessels at its disposal than it did last year, according to Malte Humpert, founder of the Arctic Institute think tank.

"If (Russia) can find buyers, this small fleet should be sufficient to lift cargoes," Humpert told Bloomberg.

Finding buyers may present a difficulty, due to wariness about sanctions violations. Former U.S. President Joe Biden sanctioned ships and companies connected with exports from Arctic LNG 2 in 2024, thought it is not yet clear if U.S. President Donald Trump will enforce sanctions as strictly.

Representatives of Arctic LNG 2 have continued to search for buyers in China and India, but have not yet made any sales, traders familiar with the matter told Bloomberg.

Arctic LNG 2 cut production from its gas fields to almost zero in November 2024, after halting liquefaction the previous month due to Western sanctions. The U.S. sanctioned two vessels and two entities connected to Arctic LNG 2 in September 2024, after previously targeting the project in a sweeping round of sanctions late August.

The August sanctions likely forced Novatek to scale back its operations at the facility. Novatek itself was sanctioned after the outbreak of the full-scale war in 2022.

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The Kyiv IndependentDmytro Basmat

Australia has, for the first time, imposed sanctions on Russia's so-called "shadow fleet" of oil tankers, targeting 60 vessels used to circumvent international sanctions and sustain the Kremlin's war effort in Ukraine, the Australian government said on June 18.

The move aligns Canberra with similar measures introduced by the United Kingdom, Canada, and the European Union.

Australia's Foreign Ministry said the sanctioned vessels operate under "deceptive practices, including flag-hopping, disabling tracking systems and operating with inadequate insurance," enabling illicit Russian oil trade that undermines international sanctions.

"Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine," the ministry said in a statement.

With this move, Australia has now sanctioned more than 1,400 Russian individuals and entities since Moscow's full-scale invasion of Ukraine began in February 2022, the government said.

The step comes amid the continued operation of Russia's shadow fleet. According to a recent study by the Kyiv School of Economics (KSE), Russia currently operates 435 tankers outside the control of Western regulators to evade sanctions such as the G7-EU price cap on Russian oil.

These vessels are typically un- or underinsured and pose a rising environmental risk due to their age and operational opacity.

KSE estimates that as of April 2024, 83% of Russia's crude oil and 46% of its petroleum product exports were shipped using shadow fleet tankers. The study warns that this undermines the effectiveness of Western sanctions and increases the likelihood of maritime disasters, as many of these ships fall outside international safety and insurance standards.

The EU formally adopted its 17th sanctions package against Russia in May, sanctioning nearly 200 vessels tied to the shadow fleet. EU foreign policy chief Kaja Kallas said the new measures also target hybrid threats and human rights violations, with more sanctions under consideration.

Some EU member states and observers have criticized the package for lacking stronger provisions to disrupt Russia's sanction evasion schemes.

Now, the EU seeks to approve its 18th sanctions package, which will add 77 more shadow fleet vessels to comply with the cap to prevent Russia from circumventing sanctions and propose imposing a ban on imports of petroleum products made from Russian oil.

The United States has signaled reluctance to pursue additional sanctions despite Moscow's continued aggression in Ukraine and rejection of ceasefire proposals supported by Western allies.

Putin ‘cannot be trusted’ as mediator, Kallas says, urges EU to tighten Russian oil cap after deadly Kyiv strike

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The Kyiv IndependentAnna Fratsyvir

An uninsured Russian Aframax-class tanker has been illegally conducting ship-to-ship oil transfers in international waters near Greece and Cyprus since July 2024, Ukraine's military intelligence (HUR) reported on June 16.

According to the agency, the vessel, operating without Western insurance, is part of Russia's expanding shadow fleet used to bypass G7 and EU sanctions on Russian oil exports.

HUR said such transfers "pose an environmental threat, allow the aggressor to conceal the origin of oil, evade international control, and ensure its supply to third countries in circumvention of sanctions."

Ukraine has identified the tanker as IMO 9247443 and listed it on the War&Sanctions platform, along with 159 other tankers allegedly belonging to Russia's shadow fleet and 55 captains involved in sanction-busting operations.

Despite price caps and Western restrictions, Russia continues to profit from oil and gas exports, which remain a vital revenue source. According to HUR estimates, roughly one-third of those profits are expected to fund Russia's war against Ukraine in 2025.

In May, the EU approved its 17th sanctions package, targeting nearly 200 shadow fleet vessels. The U.S. Treasury had earlier sanctioned over 180 tankers, which together accounted for nearly half of Russia's offshore oil shipments.

While the Biden administration ramped up pressure on Russia's oil trade early in 2024, U.S. President Donald Trump has since declined to impose new sanctions, despite Moscow's continued refusal to agree to a ceasefire.

EU leaders call for tougher sanctions on Russia at G7 summit

“To achieve peaceful strength we must put more pressure on Russia to secure a real ceasefire, to bring Russia to the negotiating table, and to end this war. Sanctions are critical to that end,” European Commission President Ursula von der Leyen said.

The Kyiv IndependentAbbey Fenbert