Denmark is exploring options to prevent a fleet of tankers, known as a “shadow fleet,” from transporting Russian oil through the Baltic Sea, the country announced on 17th June, Reuters highlights.
This move has sparked strong objections from Russian diplomats, who deem such actions unacceptable. Approximately one-third of Russia’s seaborne oil exports, amounting to 1.5% of global supply, pass through the Danish straits leading to the Baltic Sea.
What is the dark/shadow fleet?
The “dark fleet” or “shadow fleet” comprises primarily older tankers, many of which have not undergone recent inspections and lack proper maintenance. Ownership of these vessels is often unclear, and they frequently operate without adequate insurance coverage, seeking to evade sanctions and mitigate high insurance costs. This increases the risk of oil spill or collision. This could also result in a participating shipowner evading its liability under the relevant liability and compensation treaties.
Disruption to these supplies could potentially raise oil prices and impact Russia’s financial resources. Following Western restrictions on Russian oil prices aimed at reducing funds for its military operations in Ukraine, Russia has increasingly relied on a fleet of older tankers registered and insured outside Western jurisdictions.
Denmark has assembled a coalition of allied nations to assess strategies aimed at targeting this fleet, though specific measures under consideration were not disclosed by Foreign Minister Lars Lokke Rasmussen.
Furthermore, on 13th June, the UK imposed 50 new sanctions on Russia in part targeting its shadow fleet.
