Smuggling, Spies, and Sabotage: Russia's 'Shadow Fleet' Evades Sanctions

WISE NEWS PRESS / LONDON, UNITED KINGDOM — NOVEMBER 17, 2025

Russia's "shadow fleet" of "ghost" and "zombie" tankers is sustaining the Kremlin by smuggling millions of barrels of oil to opportunistic global buyers, effectively providing "immunity" against Western sanctions, according to Russian officials.

Beyond illicit trade, the fleet—composed of aging, uninsured vessels—is also allegedly used for hybrid espionage and sabotage operations against vital NATO underwater infrastructure in Europe, creating serious security and environmental risks across European waters. The growth of this clandestine operation has sharply accelerated since Russia’s 2022 invasion of Ukraine.

Evasion Tactics and Scale of the Fleet

Russia, one of the world's three largest oil exporters, now relies heavily on this shadow fleet to bypass Western restrictions. S&P Global analysts estimate that four out of five tankers carrying Russian oil lack recognized insurance from the International Group of P&I Clubs, which typically covers about 90% of all sea cargo.

This means the shadow fleet now transports an estimated 80% of Russia's seaborne oil. These ships serve multiple sanctioned nations, with 50% exclusively carrying Russian oil, 20% Iranian, and 10% Venezuelan oil. The remainder carry oil from multiple sanctioned countries, primarily destined for importers like India and China, with smaller buyers including Turkey, Singapore, and the UAE.

According to maritime analytics firm Windward, the number of ships flying dubious flags increased by at least 65% in the first eight months of 2025, with the entire shadow fleet now estimated to number 1,300 vessels.

To hide their origins, these shadow vessels use several tactics:

• Ship-to-ship transfers in international waters where port oversight is weak.

• Disabling or manipulating Automatic Identification Systems (AIS) to conceal data on location, speed, route, or identity, sometimes resulting in ships appearing to "sail on land."

• Becoming "ghost ships" by hiding ownership data, changing registration flags, or frequently changing the tanker's name. The Boracay tanker, for example, recently changed its name from Pushpa but also had seven different flags.

• Becoming "zombie ships" by using International Maritime Organisation registration numbers assigned to vessels scheduled to be scrapped, essentially using the identity of a deceased ship.

Hybrid Threats to NATO Infrastructure

The Kremlin is not only using this clandestine "navy" to fund its "war machine" but also for "hybrid" espionage and sabotage operations against NATO countries in Europe, targeting submarine cables and pipelines.

In October 2025, a Benin-flagged tanker suspected of being a launch pad for mysterious drone flights that caused airport closures in Denmark was detained off the French coast. The vessel, which had multiple names and flags, was carrying crude oil from a Russian terminal near St. Petersburg to Vadinar, India.

This investigation led NATO allies to launch the Baltic Vigilance mission, agreeing to "disrupt and deter" Russia's shadow fleet following several unexplained cable cutting incidents. However, intercepting these vessels remains difficult in international waters due to the principle of "innocent passage," which limits a state's ability to stop vessels to those perceived as a threat to their security.

Environmental and Financial Risks

The shadow fleet poses a significant environmental and safety hazard. Many tankers are aging—some well past the 25-year mark when ships are typically scrapped—and often poorly maintained, making them prone to mechanical failure and oil spills.

In December 2024, Russian authorities struggled to contain a spill of 5,000 tons of fuel oil from two 50-year-old tankers in the Kerch Strait, which a senior Russian scientist called the country's worst "environmental disaster" of the 21st century.

Covert companies, sometimes funded by Russian oil firms, are buying ships at the end of their lifespan, destabilizing the market. Because the shadow fleet often operates without adequate insurance, the financial burden of any major accident or oil spill is passed on to the rest of the world. Shipbrokers estimate a single monthly voyage carrying Russian oil can yield over $5 million for the ship owner, making the risky, secretive business highly lucrative.

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