Russia's shadow fleet oil tanker collides with ship off Denmark's coast
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Russia's shadow fleet oil tanker collides with ship off Denmark's coast

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Source:  Bloomberg

A tanker belonging to the so-called "shadow fleet" of ships used to transport Russian oil collided with another vessel near Denmark. The incident happened on March 2.

What is known about the collision between a Russian tanker and a ship

It is about the 15-year-old Andromeda Star oil tanker. The incident is still being investigated, the Danish Maritime Authority said.

The ship was supposed to deliver the flagship Russian oil of the Urals brand on March 4 in the Baltic port of Primorsk. Instead, according to Bloomberg, it went to a repair station in Denmark, where it arrived on March 17.

The article says there are no signs of severe environmental consequences, but such an accident became another reminder of the "shadow fleet" risks for European countries.

Denmark allows ships entering Russia to pass through its waters thanks to the Freedom of Navigation Treaty.

The Andromeda Star is operated by Margao Marine Solutions OPC and is based in Goa, India. The ship's insurers are unknown and are not listed as insured. The tanker's owner is listed as "unknown" in several databases.

Russia has created a shadow navy to support oil exports after sanctions from the US, the EU and the G7. According to some industry estimates, the fleet numbers up to 600 vessels.

How do sanctions affect Russia's oil business?

According to journalists, about half of the 50 tankers that used to transport Russian oil no longer load it. The main reason is powerful Western sanctions.

The last successful example of the introduction of sanctions took place with the ship "NS Leader", which was on its way to load oil in the Baltic Sea, but was forced to turn around off the coast of Portugal immediately after the notification of the introduction of sanctions against itself.

In addition, all eight vessels sanctioned in the first wave are now idle.

According to journalists, the majority — shortly after they were included in the list by the US Treasury Department.

What is also important to understand, immediately after the first sanctions to limit the price of Russian oil at the end of 2022, and then against Russian oil products two months later, Russia was able to build a network of "shadow fleet".

Moreover, as is known, some Western companies continued to transport oil beyond the established price ceiling.

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