Russian shadow-fleet tanker accident off coast of Denmark

The incident involving the 15-year-old oil tanker Andromeda Star occurred on March 2, according to a statement from the Danish Maritime Authority. The matter is still under investigation, the department said, without providing further details.

The vessel was supposed to unload Russian Urals crude oil on March 4 at the Baltic port of Primorsk. Instead, it headed for repairs at a port in Denmark, where it arrived on March 17.

Bloomberg notes that this accident is yet another reminder of the risks the shadow fleet poses to the waters, even for European countries that are no longer engaged in trade with Moscow. The vessel is operated by the company Margao Marine Solutions OPC, based in Goa, India.

Russia has created a shadow fleet of tankers to sustain oil exports following numerous sanctions from the United States, the European Union, and the G7 countries. According to some industry estimates, this fleet consists of up to 600 vessels.

Sanctions against Russia's oil sector

The G7 countries, EU, and Australia have imposed a price cap on Russian crude oil shipped by sea at $60 per barrel. Similar restrictions on the supply of oil products from Russia have been in effect since February 5, 2023.

The maximum prices were set at $100 and $45 per barrel depending on the category of oil products. It is reported that changing these restrictions requires the consent of all EU member states and G7 members.

Subsequently, Western sanctions led to half of Russia's oil and oil product exports in 2023 going to China, while India's share increased to 40% over two years. Europe's share in oil exports from Russia plummeted tenfold to approximately 4-5%.

It was previously reported that the G7 countries seek to limit Russia's ability to use its vast shadow fleet of tankers for oil deliveries.