The Dark Fleet: Oil and Gas Transportation at the Heart of International Sanctions

In recent years, the so-called "Dark Fleet" has played a central role in the oil and gas trade, circumventing international sanctions imposed on countries like Russia, Iran, and Venezuela. This term refers to a series of tankers operating in the shadows, transporting oil and liquefied natural gas (LNG) cargos with unclear traceability or transparency in transactions. Despite European and American sanctions, the Dark Fleet continues to ship millions of barrels of crude oil and cubic meters of gas to Asian markets, primarily China and India.

Dark Fleet Operations

A report from TankerTrackers.com highlighted how the Dark Fleet is being used to transfer large amounts of oil between various countries. The main routes include oil shipments from Iran to China (about 1.5 million barrels per day), from Russia to India and China, and from Venezuela to China. This trade presents a significant challenge to Western sanctions, as only one-third of the fleet has been officially sanctioned by the U.S.

Many of these ships operate under false flags, frequently changing names and navigating complex routes, with regular ship-to-ship transfers to further obscure their movements. Some of these cargos, like those of Russian ships transporting LNG, remain at sea for weeks, as demonstrated by the recent Arctic LNG 2 project. This project, tied to Novatek, one of Russia’s leading natural gas companies, has encountered logistical and market difficulties. As winter begins, navigating the Arctic routes becomes more complicated, with ice blocking the passage of numerous ships.

Russia's Role and the Impact of Sanctions

Despite sanctions from the West, Russia continues to export oil and gas thanks to this clandestine network of transport. TankerTrackers reports that millions of barrels of oil leave Russian ports every month, destined for customers like China and India, who are willing to ignore restrictions. However, challenges are mounting: inadequate infrastructure, declining demand, and the global rise in LNG supply are increasing pressure on Novatek and other Russian companies. Economic forecasts for these operations are far from optimistic, as noted by Kjell Eikland, founder of Eikland Energy.

The Crisis of the LNG Shadow Fleet

The Dark Fleet is not limited to oil transportation. The liquefied natural gas (LNG) market is facing similar challenges. In recent months, several LNG tankers have been stuck waiting for buyers, with undelivered cargos accumulating in floating storage units. The main routes to Asia are now congested, with ships like the Asya Energy and the Pioneer moving slowly toward Asian markets, while others, such as Nova Energy, remain stalled. These logistical problems are compounded by the growing global competition, which is driving down LNG prices, further straining Russian operations.

The activities of the Dark Fleet present a significant challenge to the international community, particularly regarding Western sanctions. Despite efforts to limit oil and gas trade from sanctioned countries, these clandestine networks continue to operate, supplying markets that seek low-cost resources. However, geopolitical instability and economic pressures are creating an uncertain future for these operations, with potential economic and environmental risks looming.

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The facilitation of the dark fleet is happening in places that are closer than you think. I've traced the P&I insurers for three tankers sanctioned last week to a UK-incorporated company.

The Pacific Maritime Club Limited, is listed as an… pic.twitter.com/YTvnAxweMT

— Michelle Wiese Bockmann (@Michellewb_) October 15, 2024

#Sentinel2 🛰️📷 21 OCT
At least 2⃣ Ship-to-Ship (StS) ops observed
~70km offshore Eastern Johor 🇲🇾 in #SouthChinaSea #DarkFleet ops put the environment at risk.
Do these tankers comply with #MARPOL convention?@TankerTrackers@claire_jungman@UANI@lautMY@MYCoastGuard https://t.co/F0h8by6iVd pic.twitter.com/KiDy4pHcFH

— Charlie B (@supbrow) October 21, 2024