The Shadow Fleet Fueling Russia’s War | Bloomberg Investigates

Recent questions

• How has Russia's invasion of Ukraine impacted the energy world?

  The invasion has led to the emergence of a shadow fleet in the energy world, with new ship owners and shipping companies avoiding sanctions. This shadow fleet consists of hundreds of ships transporting Russian oil through unclear ownership and operations, often heading to Greece for transfers. Traders manipulate prices and routes to evade restrictions, with concerns raised about potential environmental and economic risks involved in this unorthodox trading network.

• What are the implications of Europe considering halting Russian oil and gas purchases?

  Europe considering halting Russian oil and gas purchases has led to the concept of a price cap to control prices and revenue. The price cap aims to balance oil flow and revenue reduction for Russia, with initial success followed by breaches as the year progressed. This move highlights the struggle of politicians in the West with higher energy prices due to clandestine behavior and the difficulty of curbing Russian interests.

• How are traders evading the price cap on Russian oil?

  Traders are manipulating prices and routes to evade the price cap on Russian oil. The shadow fleet, consisting of hundreds of ships, transports Russian oil through unclear ownership and operations, often heading to Greece for transfers. China and India have even created separate supply chains to continue the flow of Russian crude, raising concerns about the effectiveness of sanctions and the challenges of regulating this unorthodox trading network.

• What role do middlemen in Dubai play in the Russian oil trade?

  Middlemen in Dubai facilitate the Russian oil trade, making significant profits and raising concerns about funds reaching the Kremlin. Despite sanctions on certain entities, there is skepticism about their effectiveness in curbing the flow of oil, with a focus on maintaining oil supply and potential unintended consequences of sanctions on global economies and geopolitical dynamics. This highlights the complex web of interests and actors involved in the shadow fleet's operations.

• What risks are associated with the old tankers in the shadow fleet?

  The shadow fleet includes old, risky tankers like the Turba, which should have been decommissioned, highlighting the risks involved in the trade. Concerns arise over potential oil spills in areas with hotels and fishing industries, emphasizing the environmental and economic risks involved. The presence of a significant number of tankers in a shadow fleet raises worries about potential accidents and the challenges of regulating this unorthodox trading network, showcasing the dangers associated with circumventing sanctions.