HomeEconomyOil: how Russia could circumvent European sanctions thanks to "ghost freighters"

Oil: how Russia could circumvent European sanctions thanks to “ghost freighters”

To deal with Western sanctions, Russia would have set up a fleet of more than a hundred ships bought by anonymous people to transport Russian oil without it being possible to verify their content and the quantity of merchandise.

The European Union and the G7 are hardening their stance on Russia. Two measures have come into force since this morning: the cap on the price of Russian oil at $60 a barrel and an EU embargo on crude oil transported by sea, like the one already decided by the United States and Canada.

In fact, Moscow has built a fleet of oil tankers that makes it impossible to know what they are carrying and at what price. These ships were nicknamed “shadow tankers”, French for ghost cargo ships. According to Anoop Singh, head of tanker research, Russia has 29 supertankers capable of carrying more than 2 million barrels, 31 Suezmax-sized tankers (1 million barrels) and 49 Aframax tankers capable of carrying more than 2 million barrels, about 700,000 barrels. .

These tankers, over ten years old, were destined for destruction. They were purchased by anonymous or unknown buyers from merchant marine records.

Sourcing from India, China and Turkey

Andrei Kostin, director of the Russian public bank VTB, had mentioned in October a budget of 16.2 million dollars to carry out the acquisition. This navy must be able to supply countries like India, China and Turkey without ever passing through the ports or territorial waters of Western countries. And to make it even more invisible, they would turn off their AIS, the maritime GPS, so as not to be seen or identified.

For Denis Florin, this strategy risks weakening the impact of the embargo.

This analysis is shared by Richard Meade, an analyst at Lloyd’s List Intelligence, who reminds the site Foreign policy that “every time new sanctions are imposed, the shipping industry finds tricks to escape them.”

There remains the question of the insurance necessary to allow the navigation of merchant ships. This ghost fleet cannot obtain commercial insurance and no shipping company will individually bear the risk, especially for the transport of dangerous goods such as oil.

Once again, a trick has been found. Iran created P&I insurance[indemnización y propiedad de envío]that inspired the Russians, says Richard Meade. As of June, the Russian National Reinsurance Company covers Russian tankers after the cancellation of coverage by Western insurers.[shippingpropertyandindemnity)quiainspirélesRusssesindiqueRichardMeadeDèsjuinlaCompagnienationalederéassurancerussecouvrelestankersrussesaprèsl’annulationdelacouvertureparlesassureursoccidentaux[shippingpropertyandindemnity)quiainspirélesRussesindiqueRichardMeadeDèsjuinlaCompagnienationalederéassurancerussecouvrelestankersrussesaprèsl’annulationdelacouvertureparlesassureursoccidentaux

Author: Pascual Samama
Source: BFM TV

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