EU Moves to Stop Russia’s Shadow Fleet from Endangering Waters

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Tejaswini Deshmukh
Tejaswini Deshmukh
Intrigued by the intersection of finance and technology, I delve into the latest RegTech advancements. With a keen eye for unraveling the complexities of compliance, I dissect current financial news and frauds.

The European Parliament is moving quickly to address a new threat from Russia, known as the “shadow fleet.” This fleet consists of over 600 aging oil tankers that are suspected of operating illegally. These ships, used by Russia to transport its oil, are seen as a big danger to Europe’s waters and coastline because of their age, mystery ownership, and lack of proper insurance. European lawmakers fear that these ships could cause a terrible oil spill in EU waters, causing great harm to the environment and risking the safety of European countries.

In a new resolution, European lawmakers are calling for strong, targeted actions to stop these ships from causing potential disasters. The European Parliament believes this is an important step in enforcing sanctions against Russia while protecting EU waters.

Why Is Russia’s Shadow Fleet a Problem?

Since Russia’s invasion of Ukraine, the European Union (EU) and its allies have placed strong restrictions on Russian oil exports, banning Russian oil from being imported by sea and setting a $60-per-barrel price cap on Russian oil sold internationally. However, Russia has been using this shadow fleet to get around the sanctions. Most of these ships are old, and some have already leaked oil into the world’s oceans, including EU waters.

Western experts believe the shadow fleet operates in risky ways, often with unclear insurance coverage, and its ownership is often hidden behind secretive companies. This lack of transparency means that no one knows who will be responsible if these ships cause an environmental disaster. According to recent research, these old tankers now carry around 80 percent of Russia’s seaborne oil, avoiding Western controls and price caps. The “shadow fleet” is key to Russia’s oil trade, which generates nearly half of its revenue, money that helps fund its military activities.

The Parliament’s recent attention to the shadow fleet follows several smaller oil spills in EU waters that may be linked to these tankers. Experts warn that more significant oil spills are now likely. If one of these older tankers were to have a major accident, it could devastate local wildlife, pollute coastal communities, and cost European taxpayers millions in clean-up expenses.

What Actions Are Being Proposed by the European Parliament?

To address the problem, the European Parliament has created a new proposal that calls for stronger actions against these tankers. In this non-binding resolution, the Parliament recommends several specific steps to make sure that these tankers don’t harm the EU’s environment or its people:

  • Systematic Sanctioning of Shadow Fleet Ships: The Parliament wants to “systematically sanction” any ships that are part of Russia’s shadow fleet, meaning that these ships would face penalties if they try to enter or use European waters. This approach is meant to stop the shadow fleet from finding loopholes in the current sanctions.
  • Improved Satellite Monitoring and Targeted Inspections: The proposal includes plans for better satellite tracking of these ships so the EU can monitor where they go and what they do. Additionally, it calls for targeted inspections of tankers to check if they’re meeting international safety standards. Inspections are especially important for older vessels, which may not be safe or could be hiding violations of EU regulations.
  • Proof of Insurance for Ships in EU Waters: One major problem with the shadow fleet is that many of these ships do not provide clear proof of insurance. The Parliament’s proposal suggests requiring all ships in EU waters to show proof of insurance. This way, if a ship causes a spill, there will be an insurance provider to help cover the costs of cleaning up the spill and protecting the affected areas.

U.K. Targets Russia’s Shadow Fleet with New Sanctions

These measures are aimed at making it much harder for Russia to use the shadow fleet to sell its oil, especially if the fleet’s operations risk polluting EU waters.

The EU’s Growing Concerns Over Environmental Risks

The Parliament’s concerns about the shadow fleet stem from the real dangers posed by old, unmonitored oil tankers. An oil spill in the Baltic Sea or other nearby waters could result in severe environmental harm, wiping out local marine life and damaging fragile coastal habitats.

The European Parliament, along with environmental experts, fears that it’s only a matter of time before an environmental disaster happens. According to Jonas Sjöstedt, a Swedish Member of the European Parliament (MEP) who helped write the proposal, the Parliament believes Europe must take strong actions now to prevent this. Sjöstedt highlighted that the EU should not allow Russia to keep using these ships to support its economy and war funding at the risk of European safety.

While the European Parliament doesn’t have the power to enforce sanctions directly, its resolutions often influence future EU decisions. Lawmakers across political groups back this proposal, showing strong support for protecting the environment while ensuring sanctions against Russia are fully respected.

In the coming days, members of the European Parliament will vote on this resolution. If passed, it will send a strong message to the European Commission and the member states to take decisive action against the shadow fleet and strengthen the current sanctions. Although the resolution is symbolic, it could lead to new EU-wide rules that would put an end to risky, unregulated oil transports near EU waters.

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