Irene Ang at Tradewinds is reporting that Kurow Shipping, a mysterious tanker company with ties to the Shadow Fleet of tankers transporting Russian oil has reportedly signed a contract for the construction of up to eight long-range Aframax product tankers with Zhoushan Changhong International Shipyard in China. The deal, worth nearly $500 million, represents Kurow’s first newbuild contract and, potentially, a marked escalation of China’s willingness to support shipping companies circumventing EU sanctions.

This marks a hard course change for the so-called “Shadow Fleet” which was previously known for utilizing aging vessels with dubious track records like the 26-year-old oil tanker Turba which Bloomberg recently found to operate under deficient safety and insurance standards, exemplifying the heightened environmental risk of these fleets, which have proliferated in the aftermath of EU sanctions on Russia. Rather than being decommissioned, Turba is part of a massive, clandestine fleet distributing Russian oil globally. This highlights potential hazards, as older, poorly maintained vessels can lead to catastrophic maritime accidents. Even though tankers are typically considered scrapped at around 15 years of age, current sanctions have increased the demand and freight rates, compelling shipowners to extend their service. The EU’s restrictions on Russian oil have not only resulted in increased long-distance deliveries to Asia but also catalyzed the creation of a shadow fleet operating outside the G7. These fleets typically employ older ships that do not meet normal insurance standards and conduct transfers in international waters outside the reach of port state inspectors.