The report, titled “The Core of Russia’s Shadow Fleet: Identifying Targets for Future Tanker Designations,” identifies 86 core tankers that continue to evade sanctions, allowing Russia to maintain oil exports despite the G7 price cap.

Key findings on Russia’s core shadow fleet

Between January 2023 and June 2024, 307 shadow tankers carried Russian crude oil, while 432 tankers transported Russian oil products. Of this total, 45 crude oil tankers and 41 oil product tankers have been identified as part of the “core” shadow fleet.

Only eight vessels from this core fleet have been sanctioned by the US, EU, and/or UK, leaving a substantial number of Russia’s critical tankers unaffected by sanctions. Since fall 2023, 64 shadow fleet vessels have been designated across these three jurisdictions, but much of the fleet remains operational.

UAE and Turkish entities fuel shadow fleet expansion

The report highlights the significant role UAE and Turkish companies play in managing Russia’s shadow fleet. Out of the 45 core crude oil tankers, 28 are managed by UAE-based Stream Ship Management Fzco, while Turkish entities oversee a considerable portion of the core oil products fleet. Vessels frequently shift management when sanctions are imposed, allowing them to continue operations under new entities, further complicating enforcement.

Strengthening sanctions and targeting core vessels

The KSE Institute urges coalition governments to increase pressure on Russia by sanctioning additional shadow fleet vessels, particularly the 45 crude oil and 41 oil product tankers identified as part of the core fleet that has not yet been sanctioned. Removing these vessels would impose significant costs on Russia and force greater reliance on mainstream tankers subject to the price cap, thereby tightening the sanctions regime.

Conclusion: Urgent action required

As Russia’s shadow fleet continues to grow, bolstered by management entities in the UAE and Turkey, current sanctions are losing their impact. The KSE Institute calls for immediate action to designate the core vessels identified in the report, tightening sanctions and curbing Russia’s ability to finance its war in Ukraine.

For more information, visit the KSE Institute’s website.

To read more policy briefs published by the KSE Institute, visit the Institute’s page on the FREE Network’s website.

Cover image created with assistance from DALL-E, an AI tool developed by OpenAI.