Tag Archives: sanctions

Could Russia sanctions work in practice even if they fail on paper?

This article is very interesting, revealing many aspects of the international trade in oil. The shadow market for oil from Russia is growing, but there’s probably a limit for it. Some tanker owners and operators will be comfortable with the idea of not using their AIS, and not using the major international P&I clubs and insurance firms. They may use older ships, which are more prone to risk, and are less efficient. They may resort to ship-to-ship transfers, since many large tankers cannot enter ports that are available to them for the shadow shipments. These transfers are inherently riskier, both from accident and pollution standpoints, and will probably lead to accidents.

So Russia may be able to move petroleum, but there may be less cash flow for Russia, and there may be a reduction in overall trade with Russia. These outcomes are what sanctions are trying to create.

Greg Miller·Thursday, December 01, 2022

Could Russia sanctions work in practice even if they fail on paper?

Zelenskyy urges Greek owners to stop moving Russian oil

There’s more to this story than just some Greeks shipping oil for Russia. Apparently Russia has been engaged in shipping Ukranian wheat via ‘dark shipping’ for a while now. Some Greek shipping magnates believe the sanctions on Russia are ‘bullshit’. With that belief, they feel little concern for making them work. Since Greek shipping moves a large amount of oil, this is a problem for the EU and for people who support Ukraine.

In dark shipping, ships turn off their AIS tracking when they are near ports where suspect cargo can be loaded. While draft upon entering and leaving can be observed, you can’t tell what’s been loaded or unloaded by the location where they docked. It’s an ideal way to transport forbidden materials without actually opting out of the universal tracking system.

All’s fair in war. And business is war. There’s no love here.

Sam Chambers July 6, 2022

Zelenskyy urges Greek owners to stop moving Russian oil  – Splash247