Greek Tanker Owners Are Returning to the Russian Oil Trade
American sanctions have reduced Russia's ability to ship oil on lightly-regulated "shadow fleet" tankers, but Moscow is maintaining its fossil fuel export revenues at about $700 million per day, in part thanks to the renewed participation of Greek tanker owners. Greek owners have emerged as crucial players in keeping Russian crude flowing to global markets, particularly to India and Turkey, according to Vortexa.
"Preliminary February data is showing Russian crude volumes carried by Greek operators at a 12-month high," said Mary Melton, a senior freight analyst at Vortexa, in a new research note. "Russian crude exports to India and Turkey will need to be offered below the price cap so that Greek operators can facilitate these volumes."
Bloomberg confirms that Russian Urals crude is now trading below $60 per barrel, a deep discount to Brent - and enough of a discount to allow Western tankers to legally participate in Russian energy exports.
The need for a discount is clear. The U.S. Treasury Department sanctioned 183 Russia-linked vessels in January, targeting approximately one-third of Russia's "shadow fleet" — a collection of aging vessels that were purchased, renamed and reflagged in order to circumvent Western shipping restrictions. Until recently, that strategy has largely worked, allowing Russia to get around the $60 per barrel "price cap" imposed on Russian energy shipping by the G7 nations. Russian energy revenue has been stable since 2023, despite sanctions.
According to the Centre for Research on Energy and Clean Air (CREA), Russia's seaborne crude oil revenues surged by 13 percent in January compared to December, reaching $240 million daily. This suggests that Russia found ways to command higher prices despite the sanctions regime, according to the center's researchers. China is the country's largest buyer, and Russia has put particular emphasis on ensuring the continued flow of premium ESPO grade crude from the Russian Far East to China.
Shadow fleet tankers transported 84 percent of the total volume of Russian seaborne crude oil in January, according to CREA, but in February, above-board Greek operators had an increasing share. "These Greek-operated vessels have migrated out of mostly Atlantic Basin trade, especially in the Mediterranean," Vortexa's Melton noted. "This could lead to significant tightening in Atlantic Basin Aframax supply, and higher earnings for vessel operators in those regions."