The inadequacy of Western sanctions targeting Russian oil exports is vividly evident just off the coast of Gytheio, a Greek town. Here, two aging oil tankers, with a combined age of 57 years and dilapidated hulls, raise questions about their ownership, insurers, and sail under a flag labeled as “very high risk” by authorities. The profits from trading Russian fuel on these vessels remain shrouded in mystery.
Adding to the suspicion is the peculiar nature of their movements. Digital tracking systems captured the 26-year-old Turba floating over four miles away while the 900-foot Simba transferred its fuel cargo into the smaller vessel, all in plain view of a Bloomberg documentary team. Concurrently, numerous similar vessels, part of an extensive clandestine fleet, engaged in similar ship-to-ship transfers or prepared to do so nearby. The inadequacy of Western
Initially designed to curb financial support for Russia’s military actions in Ukraine, the sanctions, agreed upon a year ago, imposed a $60 per barrel price cap for seaborne Russian oil—$24 below the average market price over the preceding 12 months. However, instead of achieving their intended goal, the sanctions have inadvertently given rise to a lucrative business for numerous elusive traders and shipping companies. According to trade data compiled by Bloomberg, as much as $11 billion annually in petrodollars vanish between the point of Russian oil departure and its arrival at the hands of buyers.