In the third year of Russia’s full-scale invasion of Ukraine, the effectiveness of Western sanctions aimed at curtailing the Kremlin’s war machine is being called into question. An investigation by Ukrainian media outlet Ukrainska Pravda has exposed a sophisticated network of Russian oil shipments—dubbed the “shadow fleet”—that allows Moscow to sustain its military aggression despite declared sanctions.
The Reality of Western Sanctions
Since February 2023, the European Union (EU) has imposed a ban on Russian oil imports and implemented a price cap of $60 per barrel on seaborne Russian oil. These measures, aimed at cutting Kremlin revenues, were intended to weaken its ability to finance the war in Ukraine. However, this investigation reveals that Russia continues to export millions of tonnes of oil to Europe, exploiting loopholes in enforcement.
While the sanctions exist on paper, their enforcement has been inconsistent. Reports suggest that in the first year of the invasion, EU countries paid Russia nearly €140 billion for oil and gas, according to The Centre for Research on Energy and Clean Air (CREA). Of this, approximately €80 billion came from oil revenues—money that has directly funded Moscow’s military operations. For 2024, Russia’s defence budget stands at $112 billion, with a planned increase to $142 billion in 2025, according to Bloomberg.
Russia’s Economic Lifeline
Russia’s reliance on energy exports is well-documented; oil revenues form a substantial portion of its federal budget. Despite sanctions, Russian tankers continue to ferry crude oil to EU ports under the guise of legal exemptions and through complex offshore operations. Investigative journalists tracked these activities, uncovering how tankers registered in countries such as Panama, Liberia, and the Marshall Islands operate as part of the shadow fleet.
The Ukrainska Pravda investigation highlights the systematic exploitation of EU-sanction exemptions and weak oversight. Bulgaria and Romania, in particular, have become central to these operations.
Bulgaria and Romania: The Gateways
The Bulgarian port of Burgas and the Romanian port of Constanța have emerged as key locations for the shadow fleet. For example, the Liberian-registered Lipari tanker docked in Burgas after departing from Russia’s Novorossiysk port. There, it interacted with Lukoil’s Rosinets refinery—formerly owned by Russia but now nationalised by Bulgaria. Despite the nationalisation, the refinery continues to process large volumes of Russian oil.
Bulgaria was granted an EU exemption allowing it to import Russian oil until the end of 2024. This provision was intended to ensure domestic energy security but has instead facilitated the re-export of Russian oil to third countries. According to anti-corruption organisations, Bulgaria refined nearly 5 million tonnes of Russian oil in the first 10 months of 2023, generating €1 billion in tax revenues for the Kremlin.
Romania’s Constanța port is another hub. Investigators tracked the Sredina tanker, registered in Panama, as it loitered offshore before engaging in transshipment activities—offloading oil to other vessels at sea to obscure its origins. Such transfers often occur at night and far from shore, complicating oversight.
Transshipment and Offshore Transfers
The shadow fleet operates covertly, with transshipments playing a pivotal role. For instance, the Stamos tanker was observed conducting offshore oil transfers with the Lipari tanker in Bulgarian waters. Similarly, the Sredina transferred its cargo to the Panamanian-flagged Melahat tanker near Romania. These practices conceal the Russian origin of the oil, allowing it to enter EU markets despite sanctions.
Turkey is also a significant player in this network. In 2023 alone, three Turkish ports without refining capacities facilitated the import of over 5 million tonnes of Russian oil, worth €3 billion, into the EU. This demonstrates the scale and complexity of operations designed to circumvent sanctions.
Weak Enforcement and Double Standards
The investigation raises serious concerns about the enforcement of sanctions. While advanced monitoring tools and resources are available, EU authorities have struggled—or chosen not—to detect and disrupt these activities. Critics suggest that some local authorities and businesses benefit from tacitly allowing the shadow fleet to operate.
The disparity between the EU’s declared commitment to opposing Russian aggression and the continued purchase of Russian oil reflects a troubling double standard. While the EU has provided significant financial and military aid to Ukraine, it has simultaneously funnelled billions into the Kremlin’s coffers through energy purchases.
The Broader Implications
The shadow fleet underscores a broader issue: sanctions alone are insufficient to curtail Russian aggression. Moscow’s ability to adapt and exploit enforcement gaps has enabled it to sustain its war effort. For example, tankers operating under the shadow fleet contribute directly to the funding of Russia’s military, including its missile strikes on Ukraine’s civilian infrastructure.
Sanctions were intended to weaken the Kremlin’s financial foundation. Yet, as this investigation reveals, millions of euros continue to flow into Russia’s economy, effectively underwriting its war efforts.
Conclusion
The Ukrainska Pravda investigation sheds light on the limitations of the EU’s sanctions regime. While the bloc has taken steps to reduce its dependency on Russian energy, loopholes and weak enforcement have allowed Moscow to maintain its economic lifeline.
Stronger measures are needed to close these gaps. Transparent monitoring, stricter enforcement, and international cooperation are essential to curbing the shadow fleet’s activities. Without decisive action, the EU risks undermining its own efforts to hold Russia accountable and prolonging the suffering caused by its aggression in Ukraine.
This investigation serves as a stark reminder that economic measures, no matter how comprehensive, are only as effective as their implementation.
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