Shipments of Russian oil by European shipping companies double even as EU enact sanctions on Ukraine war, experts say
European shipping companies have almost doubled their shipments of Russian oil since the start of Vladimir Putin’s invasion of Ukraine, despite desperate efforts by EU leaders to squeeze the Kremlin war machine by blocking Russia’s exports from global markets.
Campaigners said EU-based shipping firms had made a “mockery” of plans to sanction Russia, and warned that a partial oil embargo announced this week would do little to hurt Mr Putin or shorten the war.
The damning assessment came as exclusive new analysis, seen by The Independent, showed the extent to which shipping firms based in Greece, Cyprus and Malta had ramped up their transport of Russian oil around the world in recent weeks, taking advantage of big jumps in rates for tanker cargos.
The shipments have swelled Mr Putin’s coffers by billions of dollars in oil revenue, providing vital funds for Russia’s brutal war, the figures show.
While EU leaders finally reached a deal this week for a watered-down embargo on Russian oil, European tankers laden with Russian crude have plied an increasingly lucrative trade.
Analysis of Refinitiv shipping data by anti-corruption group Global Witness shows that Europe’s three major shipping countries – Greece, Cyprus and Malta – have rapidly increased the amount of Russian oil they were transporting each month since the war began.
In February, when Mr Putin’s troops invaded Ukraine, companies and vessels linked to the three countries shifted 31 million barrels of Russian oil. In May, that figure had jumped to 58 million barrels. In total, ships linked to Greece, Malta and Cyprus have transported 178 million barrels, worth $17.3bn (£13.9bn) at current prices for Russian crude, since February.
That means EU companies can continue to profit from facilitating transfers of Russian oil to countries such as India and China, which have proved to be willing buyers for the crude oil that Europe no longer wants.
China is now the leading importer of Russian oil, having increased its purchases since the war began.
Because many companies have since shunned Russian crude, the minority of companies that are willing to continue shipping it are able to collect bumper fees. A large tanker departing Primorsk could collect $32,500 a day as of Friday, compared with less than $10,000 before the invasion, a shipping industry source said.
“Ordinary citizens in European countries have been paying more for Russian oil without actually punishing Russia – in fact, only increasing Russia’s revenues going towards the war, as the Russian ministry of finance has openly bragged,” she said.
There is no suggestion that any of the companies or their owners have violated sanctions or broken the law. But the figures raise questions about the effectiveness of international efforts to financially squeeze Mr Putin’s regime and bring the bloodshed in Ukraine to an end.
Consumers in Europe have been hit by record fuel prices while companies shipping Russian oil have reaped bumper profits.
European shipping companies have almost doubled their shipments of Russian oil since the start of Vladimir Putin’s invasion of Ukraine, despite desperate efforts by EU leaders to squeeze the Kremlin war machine by blocking Russia’s exports from global markets.
Campaigners said EU-based shipping firms had made a “mockery” of plans to sanction Russia, and warned that a partial oil embargo announced this week would do little to hurt Mr Putin or shorten the war.
The damning assessment came as exclusive new analysis, seen by The Independent, showed the extent to which shipping firms based in Greece, Cyprus and Malta had ramped up their transport of Russian oil around the world in recent weeks, taking advantage of big jumps in rates for tanker cargos.
The shipments have swelled Mr Putin’s coffers by billions of dollars in oil revenue, providing vital funds for Russia’s brutal war, the figures show.
While EU leaders finally reached a deal this week for a watered-down embargo on Russian oil, European tankers laden with Russian crude have plied an increasingly lucrative trade.
Analysis of Refinitiv shipping data by anti-corruption group Global Witness shows that Europe’s three major shipping countries – Greece, Cyprus and Malta – have rapidly increased the amount of Russian oil they were transporting each month since the war began.
In February, when Mr Putin’s troops invaded Ukraine, companies and vessels linked to the three countries shifted 31 million barrels of Russian oil. In May, that figure had jumped to 58 million barrels. In total, ships linked to Greece, Malta and Cyprus have transported 178 million barrels, worth $17.3bn (£13.9bn) at current prices for Russian crude, since February.
That means EU companies can continue to profit from facilitating transfers of Russian oil to countries such as India and China, which have proved to be willing buyers for the crude oil that Europe no longer wants.
China is now the leading importer of Russian oil, having increased its purchases since the war began.
Because many companies have since shunned Russian crude, the minority of companies that are willing to continue shipping it are able to collect bumper fees. A large tanker departing Primorsk could collect $32,500 a day as of Friday, compared with less than $10,000 before the invasion, a shipping industry source said.
“Ordinary citizens in European countries have been paying more for Russian oil without actually punishing Russia – in fact, only increasing Russia’s revenues going towards the war, as the Russian ministry of finance has openly bragged,” she said.
There is no suggestion that any of the companies or their owners have violated sanctions or broken the law. But the figures raise questions about the effectiveness of international efforts to financially squeeze Mr Putin’s regime and bring the bloodshed in Ukraine to an end.
Consumers in Europe have been hit by record fuel prices while companies shipping Russian oil have reaped bumper profits.
