The global energy market is increasingly grappling with the clandestine movement of sanctioned Russian oil, a phenomenon facilitated by an unmarked fleet of “ghost ships.” These vessels are discreetly transporting crude to key Asian markets, notably China and India, complicating international relations and exacerbating tensions with the United States as critical trade dialogues proceed. This shadowy maritime network operates outside of standard commercial tracking, posing a significant challenge to economic sanctions designed to curtail Russia’s wartime financing.
President Donald Trump has publicly stated that India has committed to ceasing its practice of acquiring discounted Russian crude and subsequently re-exporting refined products. This tactic has served to sustain Moscow’s wartime economy. Trump indicated that while an immediate cessation of these oil shipments by India is not feasible, the transition is underway and expected to conclude shortly. This assertion underscores a broader strategy to hold nations accountable for trade practices that undermine Western sanctions.
The core of President Trump’s concern lies with the covert network of oil tankers, colloquially termed “ghost ships.” These vessels circumvent G7 price caps and European Union sanctions enacted after Russia’s invasion of Ukraine, continuing to ferry Russian crude. Benjamin Jensen, Director of the Futures Lab at the Center for Strategic and International Studies (CSIS), noted that this “shadow fleet” enables Russia to mitigate the impact of sanctions on its energy exports, a crucial revenue stream for its economy. The earnings from these exports are vital for Russia’s continued military expenditures. Jensen emphasizes that countries engaging with sanctioned oil are effectively supporting Russia’s military actions.
Despite existing U.S. sanctions, China remains a principal importer of Iranian oil and the second-largest purchaser of Russian crude. A substantial portion of this oil is reportedly channeled through the expanding fleet of untracked “ghost ships.” This discreet maritime operation is attracting heightened scrutiny as the Trump administration intensifies economic pressure aimed at halting the conflict in Ukraine.
Jensen outlined several evasion techniques employed by Russia’s “ghost fleet.” These include operating under foreign flags to obscure origins, frequent name changes, transferring ownership via shell companies, disabling tracking transponders, and conducting ship-to-ship transfers in international waters to conceal cargo. These transfers involve one vessel offloading its goods to another in international waters for onward transit. Jensen also suggested that some crews may not be fully aware of the illicit nature of the oil they are transporting.
A notable incident involved the seizure of the crude oil tanker “Eventin” by German authorities after it suffered engine failure in the Baltic Sea. Previously identified as a vessel involved in exporting Russian crude, the Panama-flagged tanker, which had also been named “Charvi” and “Storviken,” was found to be carrying approximately $45 million worth of Russian oil. While such interdictions occur, Jensen advocates for a comprehensive, interagency governmental approach involving intelligence, law enforcement, and economic departments, coordinated with international partners, to effectively seize vessels and impede Russia’s sanction circumvention efforts. He acknowledges that while complete eradication of oil smuggling is improbable, its reduction and increased difficulty are achievable objectives. Jensen also highlighted that the attractiveness of “ghost ship” oil extends beyond specific nations, as commercial actors globally may pursue increased profit margins.
Emily Carter has over eight years of experience covering global business trends. She specializes in technology startups, market innovations, and corporate strategy, turning complex developments into clear, actionable stories for our readers.