The «shadow fleet,» a network of tankers now numbering in the hundreds, has swiftly emerged as a consequence of the G7’s price-cap policy aimed at curbing Russia’s oil revenues. With restrictions limiting Russia’s ability to sell crude oil at market rates, a sophisticated system of covert shipping operations has arisen to sidestep these sanctions, posing a growing challenge for global enforcement efforts.

What Defines a Dark Fleet Tanker?

The dark fleet, by its very nature, operates in the shadows, deliberately designed to avoid detection. Tankers classified as part of this clandestine network typically share several key characteristics:

• Age: They are often over 15 years old.
• Opaque Ownership: The ownership is hidden or shrouded in layers of complex corporate structures, leaving no clear trail.
• Sanctioned Cargo: These vessels exclusively transport oil from sanctioned nations, including Russia and Iran, turning a blind eye to global trade laws.
• Deceptive Practices: To evade detection, dark fleet tankers frequently disable transponders (AIS tracking systems) and employ other tactics designed to keep their movements hidden from international authorities.

G7’s Countermeasures: Choking the Supply Chain

The G7 countries—comprising some of the world’s largest economies, including the United States, the United Kingdom, Japan, and others—are not standing idly by. Determined to stem the flow of illicit Russian oil, they are exploring multiple strategies to disrupt these shadowy operations. One notable tactic gaining traction involves restricting the sale of tankers to entities suspected of utilizing them for transporting sanctioned oil.

However, this strategy comes with its own set of complications. As Alexander Brandt, a partner at Reed Smith, puts it, attempting to halt tanker sales to dark fleet operators is akin to holding someone accountable for selling a car to a drug dealer—a legally murky and practically difficult challenge. Fortunately, authorities have made significant strides by cracking down on escrow agents—the intermediaries who facilitate these sales—making such transactions increasingly unattractive. «A lot of people don’t want to touch it anymore,» Brandt explains.

Direct Challenges to Dark Fleet Operations

In addition to clamping down on tanker sales, authorities have adopted a more direct and aggressive approach to intercepting Russian oil shipments. Among the most significant measures are:

• Inspection of Tankers: Critical chokepoints, such as the Danish Straits and the English Channel, are now heavily scrutinized, with vessels subjected to rigorous inspections to identify illicit cargo.
• Ship Insurance Scrutiny: Tankers without legitimate insurance coverage are facing penalties.
• Targeting Intermediaries: The focus is expanding beyond just shipowners to include the oil traders, intermediaries, and logistical players who make these transactions possible.
• Flag Registry Oversight: Authorities are tightening oversight of ship registries, ensuring that vessels under their jurisdiction comply with the sanctions and regulations in place.

The Future of the Shadow Fleet

The resilience of the dark fleet in evading sanctions enforcement has undoubtedly raised concerns, yet its future is far from certain. As legal complexities, financial risks, and logistical barriers mount, the viability of this covert network is increasingly under threat. While dismantling the shadow fleet entirely remains an uphill battle for Western regulators, the escalating scrutiny and growing deterrents may eventually limit its operations.