Russia's Shadow Fleet Spills Oil in Waters Around the World.

The UK Imposes Sanctions on Russian Tankers and Vessels

The United Kingdom has implemented the largest restrictions on Russia's shadow fleet, imposing sanctions on 18 oil tankers and 4 ships for transporting liquefied natural gas. In total, 43 oil tankers are under sanctions. The UK government considers Russia's shadow fleet a real threat.

Memories of Saudi Arabia

Relations between Saudi Arabia and Russia are deteriorating, which may lead to a decrease in oil prices. The Saudi Crown Prince refused to attend the BRICS summit in Kazan and also plans to increase production and lower the price of oil to $50 per barrel.

Problems for Russia

The decline in oil prices negatively affects the Russian budget, as revenue from it constitutes a significant part. Some OPEC+ countries are also not adhering to production quotas, complicating the situation. Moreover, foreign companies are leaving the Russian market, also negatively affecting oil production.

Running Out of Money

According to an expert, Russia is an oil state and the Putin regime uses rent to finance aggression against Ukraine. A decrease in oil prices could lead to serious problems for Russia. There is also a risk of increased production costs due to restrictions and expenses on maintaining old fields.

The Shadow Fleet and Its Consequences

Russia has created a shadow fleet to transport oil bypassing sanctions. However, these vessels are unregulated, uninsured, and may cause oil spills and trade route blockages. Journalists claim that Russian tankers were responsible for 9 oil spills in the last 2 years.

Russia has spent about $10 billion on creating a shadow fleet used to supply oil to the global market. However, sanctions pose serious problems for Russia in transporting raw materials.