Ukraine estimates 238 ‘shadow’ tankers shipping sanctioned Russian, Iranian oil

Ukraine has identified 238 "shadow" tankers transporting sanctioned oil from Russia and Iran to boost revenue, calling on governments to clamp down on their operations to reduce safety and environmental risks.

In a statement on Dec. 12, the Defense Intelligence of Ukraine said the ships with more than 100 million dwt -- accounting for 17% of the world's oil tanker fleet -- help the "aggressor" states generate "billion-dollar revenue" and threaten "global environmental security."

"Fossil fuel exports, bypassing sanctions, are the main source of income for Russia and Iran," said the DIU, estimating Russia earned $188 billion and Iran $53 billion from oil exports in 2023.

Ukraine estimates that 218 tankers have been used to transport Russian oil and 51 to ship Iranian barrels. The total number of shadow tankers reaches 238 as some of them have been shipping from both countries.

Since Russia invaded Ukraine in February 2022, shadow tankers have already been involved in more than 50 incidents from the Danish Straits to Malaysia while transiting in the Arctic without being designed to sail in icy conditions, according to the statement.

"The shadow tanker fleet ... [includes] mostly outdated, poorly maintained vessels without proper insurance, with 'complicated' ownership and management structures located in 'friendly' jurisdictions, under 'convenient' flags," the DIU said.

"Such vessels resort to deceptive tactics at sea to conceal the origin of their cargo, threaten 'environmental chaos' and billion-dollar losses to coastal countries by passing through heavily trafficked narrow international transportation routes without pilotage."

With just 134 of the ships blacklisted by Western authorities, the Ukrainian government agency said governments should sanction more ships as well as their owners, managers, operators and other related parties.

Governments should also enhance clampdown measures, including secondary sanctions on companies "cooperating with" sanctioned entities, blockage of passage for sanctioned ships in international straits, and ban on ship-to-ship transfers of Russian fossil fuels in territorial waters and economic exclusive zones, among others, according to the DIU.

New sanctions

The DIU statement was released after EU member states on Dec. 11 agreed to the bloc's 15th sanctions package against Russia, which will expand Brussels' list of sanctioned tankers.

In November, members of the European Parliament passed a resolution calling for a wider range of maritime services firms targeted as well as ships without "known insurance" for breaching EU sanctions.

Full details of the EU's latest clampdown measures are not yet published. POLITICO reported the number of blacklisted oil and gas tankers would increase by 52 to 79 without citing sources.

Based on a recent analysis of S&P Global Commodities at Sea and Maritime Intelligence Risk Suite data, 586 tankers with 57.2 million dwt might have been used to transport sanctioned Russian oil and 155 tankers with 35.7 million dwt ship Iranian oil as of November.

India has been the top buyer of Russian crude in recent quarters but refrained from purchasing Iranian barrels, according to CAS data. China is the largest buyer of Iranian crude and the second-largest buyer of Russian crude. Western sanctions can often be ineffective, as the world's two largest seaborne crude importers are generally willing to receive blacklisted tankers, according to industry observers.