Australia Sanctions 60 Vessels in Russia’s Shadow Oil Tanker Fleet
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In a important move to increase pressure on Russia, Australia has imposed sanctions on 60 vessels belonging to Russia’s “shadow fleet” of oil tankers.This marks the first time Australia has specifically targeted Russian vessels, joining allies like the EU, Canada, and Britain in an effort to disrupt Russia’s ability to fund its war in Ukraine [[1]].
What is Russia’s Shadow Fleet?
The shadow fleet is comprised of hundreds of aging tankers with obscured ownership, used to covertly transport Russian crude oil and other sanctioned goods around the world. Thes vessels often engage in deceptive practices to avoid detection and sanctions [[1]].
did You Know? S&P Global estimates that approximately 591 shadow fleet tankers are currently operating in the Russian oil trade [[1]].
Australia’s Response
The Australian government’s sanctions empower authorities to direct sanctioned vessels to leave Australian waters,deny them entry to ports,and take other measures to disrupt their operations. According to a statement from Foreign Minister Penny Wong’s office, these actions underscore Australia’s commitment to holding Russia accountable for its actions in Ukraine [[1]].
The sanctions are designed to combat the deceptive practices employed by the shadow fleet, including flag-hopping, disabling tracking systems, and operating with inadequate insurance. These practices enable the illicit trade of Russian oil and other sanctioned goods, undermining international efforts to limit Russia’s financial resources [[1]].
Impact and Implications
Economists at the KSE Institute have found that Russia’s shadow fleet allows it to circumvent price caps on its oil exports, generating billions of dollars in extra revenue. in September 2024, it was estimated that 92% of seaborne crude oil was transported without the involvement of EU services, allowing Russia to generate close to $8 billion USD in extra earnings since January 2024 [[1]].
The shadow fleet has also been linked to a growing number of incidents involving damage to undersea cables in the Baltic Sea, raising concerns about potential sabotage and prompting increased vigilance from NATO allies [[1]].
Pro Tip: Monitoring the ownership and insurance details of vessels can help identify those potentially involved in shadow fleet activities.
International Cooperation
Australia’s sanctions are part of a broader international effort to pressure Russia and limit its ability to fund its war in Ukraine. The EU is currently considering an 18th package of sanctions against Russia,which would target additional vessels in the shadow fleet and oil trading companies [[1]].
These coordinated actions demonstrate a united front against Russia’s aggression and a commitment to upholding international law.Australia has repeatedly condemned Russia’s invasion of Ukraine and called for an immediate end to the war [[1]].
Sanctions Against Russian Oil Tankers: A Timeline
| Date | Action | Details |
|---|---|---|
| October 12, 2023 | US Sanctions | The U.S. imposed sanctions on two tankers, Yasa Golden Bosphorus and SCF Primorye, for transporting oil above the $60 per barrel price cap [[3]]. |
| June 2024 | UK Sanctions | The UK followed suit,naming several ships involved in the transport of Russian oil [[3]]. |
| June 2024 | EU Sanctions | The EU also imposed sanctions on Russian oil tankers as part of a broader package of measures [[3]]. |
| June 18, 2025 | Australian Sanctions | Australia imposes sanctions on 60 vessels in Russia’s shadow fleet, marking the first specific sanctions on Russian vessels [[1]]. |
What long-term effects will these sanctions have on Russia’s ability to finance its war? How can international cooperation be further strengthened to combat the shadow fleet’s activities?
