In the wake of Western sanctions surrounding the Ukraine war, Russia developed a network of clandestine oil tankers to ensure the continuity of its energy exports – the so-called “shadow fleet.” This system of tanker ships, through various deceptive practices, has been successful in evading international monitoring and restrictions. The vessels, often registered under flags of convenience, are Moscow’s primary tool for circumventing the oil price cap and maintaining supply to global energy markets. And despite international efforts to counter such activities, the shadow fleet has significantly expanded, becoming a major revenue source for Russia.

In fact, Russia’s shadow fleet has been so successful that similar strategies are sure to arise in the future as other states seek to evade sanctions.

The invasion of Ukraine in February 2022 resulted in unprecedented sanctions from the EU, the G7, and the United States against the Russian Federation. The primary goal of the sanctions was to reduce Moscow’s ability to finance its military operations by targeting its oil and gas sector, which accounts for approximately 60% of Russian exports and about 40% of state revenues. Key measures by the Western powers included:

• A ban on the import of Russian oil by sea;
• A price cap limiting the maximum price of Russian crude oil to $60 per barrel;
• Prohibitions on providing transportation and insurance services for Russian oil sold above the price cap