How Russia hides companies behind its shadow fleet: Media investigation
Photo: Media found out how Russia owns companies that rely on the “shadow fleet” (Getty Images)
Russia has moved part of the companies managing operations of its "shadow fleet" abroad, with Dubai becoming one of the largest hubs for these operations, the Finnish media company Yle reports.
Around 60 such companies have registered at the elite Meydan Hotel in Dubai, which has become a "virtual office" for thousands of firms listed there only on paper. One of these companies is linked to the tanker Eagle S, suspected of damaging underwater cables in the Gulf of Finland on December 25 of last year.
Elina Valtonen, Minister for Foreign Affairs of Finland, stated that the complex structure of Russia's "shadow fleet" is a significant problem.
"For instance, if a major oil spill occurs in the Baltic Sea, it is unclear whether anyone can be held accountable," Valtonen stated.
Valtonen highlighted that the European Union is currently seeking ways to make sanctions against Russia’s oil sector more effective. One potential measure could be imposing sanctions on the companies operating such tankers.
Minister for Foreign Affairs of Finland also noted that one of the challenges with enforcing sanctions against Russia is that many countries do not comply with them.
Several EU countries, including Slovakia, Czechia, and Hungary, continue to purchase Russian oil. The "shadow fleet" helps Russia sell oil to third countries, circumventing the price cap set by the G7.
In some cases, oil is routed to the EU via indirect methods, such as after being processed into petroleum products in other countries.
Russia's 'shadow fleet'
Russia’s "shadow fleet" refers to a network of tankers that operate outside official sanctions to transport Russian oil. After Western sanctions were imposed and price caps were introduced, Russia began using older ships that operate without insurance from Western companies, concealing the owners and final destinations of the shipments. These tankers often disable transponders, change flags, and use complex ship-to-ship transfer schemes at sea.
As part of the EU's 16th sanctions package against Russia, restrictions were imposed on 74 vessels from third countries.
