In face of oil price cap, Russia building up "shadow fleet" to continue exports - media

Russia is believed to have acquired since year-start more than 100 old tankers in an attempt to create a "shadow fleet" for oil exports after a price cap is introduced.

This was reported by Meduza with reference to the Financial Times, according to Ukrinform.

Russia tries not to publicize such deals, but experts with Britain’s broker Braemar Shipping Services noticed a significant increase in the number of previously unknown buyers who are purchasing 12-15-year-old tankers that were soon to be decommissioned. According to analysts, they are acquired for the needs of Russia, which will use these old vessels to deliver oil to India, China, and other Asian countries.

Russia needs this "shadow fleet" because the EU and G7 set a price cap for the sea transportation of Russian oil, after which the largest Western insurance companies will stop insuring vessels carrying oil from Russia at a price beyond the cap.

At the same time, despite such purchases, in the first months after the introduction of the price cap, Russia will still have not enough tankers to transport oil, which will lead to a decrease in exports and drive prices up in the global oil market.

As Ukrinform reported earlier, the European Union and G7 agreed to introduce a price cap for Russian oil at the level of $60 per barrel.