Western shipping companies have pocketed billions by offloading tankers to Russia’s shadow fleet, a move that’s helping Moscow dodge EU sanctions and keep its war machine running, according to an investigation by Dutch news outlet Follow the Money (FTM).
Despite sanctions, over a third of tankers hauling Russian crude today once belonged to Western firms—230 of them from Europe and the U.S. Belgian shipping giant CMB Tech alone earned $135 million from selling vessels to Russia’s network. And it’s not just private companies cashing in—entire countries are benefiting. Greece, where shipping fuels 8% of the economy, has fought against tougher EU restrictions on ship sales. Greek firms previously owned about 55% of Russia’s Western-origin shadow fleet.
The workaround is simple: EU companies funnel sales through intermediaries in India, Seychelles, and Vietnam, sidestepping direct bans on selling ships to Russia. This has allowed Moscow to keep its oil flowing. In June 2024, Russian oil exports via shadow tankers hit 4.1 million barrels per day, according to the Kyiv School of Economics.
“The shadow fleet enables Russia to circumvent the G7+ oil price cap,” researchers wrote, warning that it’s undermining the entire sanctions regime.
Beyond financing Russia’s war effort, these shady deals also spell environmental disaster. Many of these tankers, aging and poorly maintained, are accidents waiting to happen—raising the risk of catastrophic oil spills.
