Russia’s shadow fleet sanctioned by EU and UK: What is it?

The European Union has sanctioned 189 ships suspected of operating within Moscow’s elusive “shadow fleet” of oil tankers — a vast, secretive network of ageing ships used to bypass Western sanctions and sustain the Kremlin’s oil revenue streams.

The EU’s 14th package of sanctions, endorsed by foreign ministers in Brussels, also targets individuals, companies, and facilitators enabling these operations. This brings the total number of targeted vessels to nearly 350.

These vessels are believed to be moving oil, petroleum products, and in some cases, stolen Ukrainian grain, through discreet maritime routes.

The move brings the total number of ships targeted by the EU to nearly 350. Alongside vessel sanctions, the EU also imposed asset freezes and travel bans on various individuals and entities believed to be facilitating Russia’s sanctions evasion — including actors based in the United Arab Emirates, Turkey, and Hong Kong.

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According to EU foreign policy chief Kaja Kallas, the measures send a clear message: “Putin feigns interest in peace, more sanctions are in the works. Russia’s actions and those who enable Russia face severe consequences.”

Simultaneously, the United Kingdom launched its own tranche of sanctions, targeting over 100 individuals and entities. The British government specifically sanctioned 18 more ships linked to the shadow fleet, as well as Russian financial institutions, defence supply chains, and energy interests.

In a statement, UK Foreign Secretary David Lammy condemned Russia’s latest military strikes and demanded an immediate halt to hostilities. “Putin’s latest strikes once again show his true colors as a warmonger,” Lammy said. “We urge him to agree a full, unconditional ceasefire right away so there can be talks on a just and lasting peace.”

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What is Russia’s shadow fleet — and how does it operate?

Russia’s “shadow fleet,” sometimes referred to as the “dark fleet” or “ghost fleet,” is not an official naval group but rather an informal and expansive fleet of vessels used to move oil and other sanctioned goods across international waters while avoiding detection and penalties.

The ships are typically older tankers with obscure or concealed ownership, no ties to major Western insurers, and lax safety records.

Many sail under flags of convenience — primarily from Panama, Liberia and other jurisdictions with minimal regulatory oversight — making tracking and accountability difficult, reported The Washington Post.

The actual size of the fleet remains a matter of estimation due to its opaque nature. While Ukraine has identified around 500 vessels as part of the network, a 2024 report by the Kyiv School of Economics Institute and S&P Global estimated over 400 ships were involved in transporting oil and petroleum products.

Robin Brooks of the Brookings Institution cited a figure of 343 ships earlier this year, while a US congressional study suggested as many as 1,600 of the world’s 7,500 oil tankers could be involved in sanctions-evasion activities.

Eitvydas Bajarunas of the Center for European Policy Analysis believes up to 1,300 vessels may be central to Russian oil exports under sanctions.

These ships utilise sophisticated evasion tactics, including disabling transponders, falsifying ship identification numbers, spoofing GPS signals and engaging in ship-to-ship oil transfers in international waters to avoid port inspections.

Many are registered through shell companies in jurisdictions like Dubai or the Seychelles, which facilitates rapid ownership changes to avoid enforcement.

Why are Europe and Nato so concerned?

The shadow fleet poses not only economic challenges to the enforcement of sanctions but also security and environmental threats.

Many of the ships are in poor condition, sailing without proper safety certifications or reliable insurance, increasing the risk of maritime accidents, oil spills, and mechanical failures.

Last December, a major incident occurred when two aging Russian tankers were damaged in a storm in the Kerch Strait, leaking significant quantities of oil.

Russian authorities scrambled to contain what could become one of the region’s most severe environmental disasters.

Given the lack of credible insurers and the presence of financial sanctions on Russian institutions, the process of settling potential insurance claims remains murky, raising questions about liability and compensation for environmental damage.

Beyond environmental concerns, NATO and EU officials have warned that the fleet might be involved in acts of hybrid warfare.

In recent years, unexplained damage to undersea cables in the Baltic Sea — crucial to the digital and energy infrastructure of countries like Sweden, Finland, Germany and Estonia — has prompted fears of covert sabotage.

Nato Secretary General Mark Rutte noted earlier this year: “There is reason for grave concern,” after repeated cable disruptions. Finnish police even seized a tanker, the Eagle S , on suspicion that it may have damaged the Estlink 2 power cable between Finland and Estonia.

US and European intelligence agencies suspect the incidents could result from negligent navigation by untrained crews operating these substandard ships.

However, European officials assert they also fit into a broader pattern of Russian hybrid tactics. “This is something very new,” Estonian Foreign Minister Margus Tsahkna said after a dramatic incident on May 13, when a Russian Su-35 fighter jet flew into Estonian airspace to seemingly defend the Jaguar, a shadow fleet tanker recently sanctioned by the UK.

“Russia has now officially tied and connected itself to the so-called shadow fleet,” he added.

French Foreign Minister Jean-Noël Barrot called the episode “a testament to the level of the threat that we’re facing on the eastern flank of Nato.”

Who benefits — and what are the implications?

Despite restrictions, Russia continues to profit from shadow fleet operations. Oil remains one of the country’s largest revenue sources, and the shadow fleet enables it to maintain exports despite Western-imposed price caps.

In fact, rising global oil prices have allowed Russia to offset some of the financial damage from sanctions.

Much of this oil is purchased by countries like China and India , often at steep discounts well below the G7’s $60 per barrel cap, reported Reuters. These sales persist despite Western rules requiring shippers to prove compliance with price restrictions if they use Western services.

Many ships simply avoid these services entirely, turning to insurers and financiers in countries that remain neutral or friendly toward Moscow.

The ever-expanding nature of the fleet, and the emergence of Russian-backed insurers to cover banned vessels, complicates international enforcement efforts. Even when tankers are blacklisted or lose insurance due to sanctions violations, new ships often take their place.

What about the war in Ukraine?

A recent phone call between President Vladimir Putin and US President Donald Trump reportedly ended prospects of an immediate ceasefire. The United States has so far refrained from joining the latest EU sanctions, although American intelligence continues to monitor Russia’s circumvention efforts.

Ukrainian President Volodymyr Zelenskyy has called for unified and decisive action from allies. “It is obvious that Russia is trying to buy time to continue the war and occupation,” Zelenskyy wrote on Telegram.

“We are working with partners to put pressure on the Russians to behave differently. Sanctions matter, and I am grateful to everyone who makes them more tangible for the perpetrators of the war.”

Despite repeated rounds of sanctions since the February 2022 invasion, Russia has adapted by constructing alternative financial and logistical systems, often aided by third-party actors in Asia.

Critics argue that enforcement has been slow, in part due to economic interests within the EU — such as Greek shipping magnates — who have profited by selling ships to Russian intermediaries.

However, a growing coalition of countries is now moving to disrupt these evasive networks. In December 2024, twelve Western countries — including the UK, Germany, the Netherlands, and the three Baltic states — agreed to inspect insurance documentation for ships travelling through key chokepoints like the Danish Straits and the Gulf of Finland.

With inputs from agencies