Russia has secretly amassed a fleet of more than 100 old tankers to help circumvent Western restrictions on the sale of Russian oil following its invasion of Ukraine, shipbrokers and analysts cited by the Financial Times said.

Shipbroker Braemar estimates that Moscow, which relies heavily on foreign tankers to transport its crude oil, has amassed more than 100 vessels this year through direct or indirect purchases.

Energy consultancy Rystad says Russia will add 103 tankers in 2022 through the acquisition and redeployment of vessels serving Iran and Venezuela, two countries under a Western oil embargo, the British publication said.

Russia wants to use the “ghost fleet” to circumvent sanctions

The Kremlin’s decision to build what oil tankers call Russia’s “shadow fleet” is an attempt to circumvent new international restrictions on the country’s oil.

From Monday, Russian oil will not be imported into the EU by sea, and the G7 countries, as well as Australia, agreed on Friday to cap the price of Russian oil at $60 a barrel, in line with an agreement reached earlier by 27 European countries. Union.

Traders say the “ghost fleet” will reduce the impact of these measures, but not eliminate it.

The EU and G7 punitive measures are expected to block Moscow’s access to much of the world’s oil tanker fleet, as insurers will no longer be able to cover vessels carrying Russian oil – regardless of destination – unless it is sold through the system. .

Russian oil production could fall by 500,000 to 1 million barrels per day (bpd) in early 2023 after the European Union imposes (from Monday) a ban on seaborne imports, two Russian oil sources told Reuters.

The estimate is at the lower end of analysts’ forecasts for the combined impact of the ban and the proposed price cap on Russian oil, although sources said the actual level would depend on several factors yet to be determined.

Moscow bought old ships that would be scrapped in the coming years

In response to the price cap, President Vladimir Putin and Kremlin officials have said they will not sell oil to countries that impose it.

The Russian embassy in the US said on Saturday that the policy was “reshaping” the free market and insisted that oil would continue to be sold.

“Despite the current flirtation with this dangerous and illegitimate instrument, we are confident that the demand for Russian oil will continue,” the embassy said.

Russia appears to be aiming to use its new fleet to supply oil to countries such as India, China and Turkey, which have become bigger buyers of oil while Europe has cut demand.

The vessels currently being bought by the Russians are typically 12 to 15 years old and should be scrapped within the next few years, said Anup Singh, Braemar’s head of tanker research.

“These are buyers with whom we, as long-time brokers, are not familiar. We are sure that most of these ships are destined for Russia,” Singh was quoted as saying by the Financial Times.

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