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2 Jul 2025 9:00
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  •   Home > News > International

    Australian government places sanctions on 60 vessels in Russia's shadow fleet of oil tankers

    The government says "Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine".


    The Australian government has imposed sanctions on 60 vessels in Russia's shadow fleet of oil tankers for the first time.

    The shadow fleet is a collection of hundreds of rusting tankers covertly carrying Russian crude oil around the world, according to the European Union (EU).

    Alongside the EU, Australia's partners Canada and Britain also have current sanctions on the shadow fleet.

    In a statement, a spokesperson for Minister for Foreign Affairs Penny Wong said: "The sanctions reinforce Australia's consistent commitment to ensuring Russia, and those enabling its illegal invasion of Ukraine, face consequences."

    According to the sanctions, the government may direct a sanctioned vessel to leave Australia, including by a particular route, and refuse it entry into a port or any place in the country.

    "Russia uses these vessels to circumvent international sanctions and sustain its illegal and immoral war against Ukraine," the statement adds.

    "Operating under deceptive practices, including flag-hopping, disabling tracking systems, and operating with inadequate insurance, the shadow fleet enables the illicit trade of Russian oil and other sanctioned goods."

    These are the first specific sanctions Australia has imposed on Russian vessels, however, the government has imposed more than 1,400 sanctions on Russia over the February 2022 invasion of Ukraine.

    The government has repeatedly denounced Russia's invasion of Ukraine as illegal and immoral.

    "We will continue to take coordinated and decisive action to protect Ukraine's sovereignty and territorial integrity, and disrupt Russia's ability to fund its aggression," the statement from Penny Wong's office added.

    "Australia once again calls on Russia to immediately end this war and withdraw from Ukrainian territory. We remain steadfast in our support for a comprehensive, just and lasting peace for Ukraine."

    Last month, Canberra condemned a "sham trial" in which a Russian-controlled court sentenced Australian Oscar Jenkins to 13 years in a penal colony after he was captured while fighting for Ukraine.

    What is the shadow fleet?

    Russia's shadow fleet consists of aging vessels with obscure ownership acquired to evade Western sanctions amid the war in Ukraine.

    The exact number of shadow vessels remains unknown, however, S&P Global estimates there are 591 shadow fleet tankers operating in the Russian oil trade.

    The fleet flies the flags of various countries and employs a variety of murky tactics to conceal the origins of its cargo.

    Approximately 44 per cent of Russia's shadow fleet is owned and managed by companies from the United Arab Emirates, the KSE Institute says.

    Economists at the KSE Institute say Russia's shadow fleet allows it to evade the price cap for a large share of its oil exports.

    In September 2024, 92 per cent of seaborne crude oil was transported without the involvement of EU services, allowing Russia to generate close to $US8 billion ($13 billion) in extra earnings from January 2024.

    The shadow fleet has also been linked to a growing number of undersea cable damage incidents in the Baltic Sea.

    These incidents have sprung NATO allies into action, with joint forces from 11 member nations signing up to tackle sabotage at sea.

    Earlier this week, the European Commission proposed an 18th package of sanctions against Russia for its invasion of Ukraine.

    The proposal lists more vessels that make up the shadow fleet and also targets oil trading companies.


    ABC




    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

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