Russia Shifts Tanker Operations to Morocco

Posted on Jun 14, 2024 at 12:06 AM

In an attempt to evade sanctions and maintain crucial revenue streams, Russia continues to shuffle its tankers in a strategic game. According to Bloomberg, demand for Russian oil has been declining, leaving many sanctioned tankers inactive. A Bloomberg tracking study highlights that smaller Aframax class crude tankers, carrying 80,000–120,000 dwt, are still operational, transferring crude from Russian depots through ship-to-ship transfers, a standard practice for moving large loads to customers.

Greece's Stance and Measures

Greece, previously a favored destination for oil transfers, has recently faced challenges due to military drill-related restrictions. Reports suggest that certain areas have been cordoned off to prevent oil transfers. Greece's Minister of Maritime Affairs, Christos Stylianides, has underscored the risks associated with sanctioned tankers, announcing new measures to protect the Greek shoreline from potential environmental harm. These measures were disclosed at the Posidonia trade expo, emphasizing Greece's commitment to mitigating the risks posed by these transfers.

Bloomberg reported the presence of multiple Russian tankers in Nador Bay, Morocco. Meanwhile, a Greek-managed Russian tanker registered in Liberia awaits orders, with two other Russian tankers now under UAE supervision, having arrived in the Cook Islands.

Morocco's Emerging Role

Utilizing Morocco's ports for ship-to-ship oil transfers and tech imports, Russia has found a new ally in its quest to bypass Western sanctions following its invasion of Ukraine. Bloomberg notes that Morocco is emerging as a vital partner in Russia's efforts to circumvent restrictions. Similar to earlier displacements, Russian tankers may soon be relocated to a new spot near Ceuta, a Spanish enclave in North Africa.

Russia's crude export volume has been on the decline since mid-February. However, in April, exports exceeded daily forecasts by 120,000 barrels, with Russia offering to bridge the gap. By May, the daily cap was reduced by 170,000 barrels. Amidst a weakening oil market, three Russian tankers were idled in May, with only one of 40 US-sanctioned tankers currently active, underscoring the pressing need for alternative locations for oil transfers.

Sovcomflot, a prominent Russian tanker company, has acknowledged the adverse impact of sanctions on its operations. In response, the company has reportedly been altering tanker identities and flags, adopting third-tier flags such as Gabon to maintain business continuity. Europe is actively engaging in discussions to bolster control over shadow fleet tankers and enforce the price cap, aiming to tighten the noose on these evasive practices.

The International Maritime Organization (IMO) has labelled cargo switching in open oceans as a "dangerous practice," reflecting the broader concerns surrounding these illicit transfer methods. As the global community intensifies its scrutiny, Russia's maneuvering of its tanker fleet remains under the spotlight, revealing the lengths to which it will go to sustain its oil exports amidst mounting international pressure.

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