2024-10-22 | @SiliconWafers | Russia's Blood Oil Transported by a Shadow Fleet of over 600 Tankers

2024-10-22 | Moscow has been using old, underinsured ships to transport oil, and is estimated their capacity has increased by 70% since last year. This is despite a recent crackdown on insurers and shipping companies that are apparently enabling Moscow to circumvent Western sanctions.

@SiliconWafers
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Shares in shipbroker Braemar fell after the Financial Times of London release a report on the Russian ‘shadow fleet’, and how it’s using ancient vessels to move oil beyond the reach of western sanctions. The ‘shadow fleet’ is estimated to consist of more than 400 vessels that are moving about 4 million barrels of oil per day.

The Financial Times alleged involvement of Braemar, causing its stock to fall 11% in two days. London has long been a global centre of the maritime industry and Braemar, founded in 1982, is one of the industry’s leading brokers. Their business model is to match buyers and sellers of vessels in return for a percentage of the purchase price. It would be scandalous indeed, if they were involved in brokering to build up Russia’s shadow fleet that it props up its war economy and the war machine that is focused on the annihilation of Ukraine. Oil that Russia transports using this fleet generates billions of dollars a year in additional revenue.

The FT reported that at least 25 of shadow fleet vessels had been purchased by a British accountant on behalf of Eiger Shipping DMCC, the Dubai-based shipping arm of Lukoil, Russia’s second-largest oil producer. Eiger, it is alleged, financed the acquisitions by paying in advance to charter the vessels. The accountant’s lawyers, and another person, told the FT Braemar was fully aware the vessels were being acquired for, and financed by, Eiger.
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[neilwilson]

2:25 "In a statement" Not the words, but the subtle contempt in which they were said. Great work.

[williambrown]

Great programme.
Keep up the good work.
Best.

[Emmanuel]

Thank you for shedding light on the crucial issue that decades-old oil tankers, some as old as 70 years, are being bought through obscure means and filled without proper safety measures, crossing international waters unchecked. The growing danger, which becomes more likely over time, is that one or even several of these tankers could rupture and break down along commercial routes, leading to irreparable environmental damage and long-term disruptions in international shipping. No one will take responsibility for addressing this, as these crude oil transports are happening without any proper tanker insurance. The involvement in these illegal oil transports clearly highlights the utter recklessness of Putin’s war machine.

This poses a serious global risk, not just to marine ecosystems, but to the economies that depend on safe and reliable maritime trade. The international community must act swiftly and decisively to prevent a catastrophe that could result in both environmental devastation and economic fallout. It is imperative that these shadow operations be dismantled and accountability enforced before it's too late

[diakritika]

Why can't those ships be impounded for being too risky? There must be something in the maritime authorities' toolkit …

[richarddietzen]

Perhaps Ukraine and allies could commission a privateer.

[awf]

I'm a little surprised that these ships don't have "accidents" whilst in port.

[DarkestAlice]

Thank you, Jonathan, for another excellent episode of Silicon Wafers, extremely under-reported. Just like the ticking time bomb Ruby that is still anchored off the UK's coast. On Australian beaches, "tar balls" have appeared. Wonder, where they come from...
🇺🇦 Перемоги та миру всім українцям! 🇺🇦

[louisebean]

The American and European governments are weak in allowing this to happen. Not only is Russia getting money through illegal means for its war efforts, but oil spills from sub standard transport ships, could cause massive environmental damage!

[nurseSean]

Privateer!
A bill was introduced in the American Congress to issue letters of Marque 2 years ago. Unfortunately it didn’t go anywhere.

[Rhotz-ixll]

The EU and NATO countries should refuse to do business with anyone that does business with Russia. Choice would be obvious then for everyone.

[terjeoseberg]

Why can’t the shadow fleet ships be confiscated? They could auction the contents, and the ship if it’s in good shape. Otherwise they could scrap the ship. They could then give the proceeds to Ukraine to pay for their military.

[Anita-k]

It irks me, that there were already accidents with that ru shadow fleet without real consequences tbh ... and I hadn't even heard about it before you told me/us viewers about it.
This is a disaster waiting to happen!😢

[KHLing-xsqo]

The free world are too patient or react much tooo slowly. Enough is enough.

[Ecomorph]

While I like the concept of using a noncommisioned fleet of privateera, a little too reputational impacting, we should move from fines to incarnation. An actual penalty would go a long way in reducing this form of sanctions avoidance

[MartinLundström-lv]

If war goes BAD, the ensurance of oil-tankers, will go through the roof.
De-Escalation...
Does not come...
without consequences...

[MartinLundström-lv]

If border security law, does NOT apply, why should international shipping rules still apply?
...
Russia may have wreacked more then they first intended...
- Should have known better?

[aleue]

If the USA becomes energy independent again and oil drops back to 40$ a barrel, Russia will not be able to find byers, Russia government funding will be done and the war in Ukraine will have to end fast, probably on Ukrainian terms. If the democrats in the USA won't produce more oil, maybe they can find someone else to get government out of the way of local oil production and efficient saft transport through pipelines.