Russia has created a shadow fleet of old ice-class ships, transferring them to unidentified companies based in Dubai to transport liquefied natural gas worldwide, evading Western sanctions.
In the months following its full-scale invasion of Ukraine and the imposition of Western sanctions, Russia created a shadow fleet to transport oil around the world. According to recent reports, Moscow has begun similar efforts to transport liquefied natural gas. Which is necessary to increase exports, fill state coffers, and finance military needs.
Russia’s attempts to expand its share of the global LNG market have been hindered by U.S. sanctions. Which have impeded foreign investment and the supply of ships specifically for Arctic routes. New European sanctions that will take effect next year will restrict port access, further complicating logistics.
According to the global shipping database Equasis, ownership of at least eight ships has been transferred to companies in Dubai in the past three months. Four of the ships are ice-class vessels, which Moscow allowed to sail in Russian Arctic waters this summer.
There are several signs that Russia is working to build a LNG Shadow fleet. Malte Humbert, the founder of International Interests, an Arctic Research Institute based in Washington, made a statement regarding the acquisition of old freighters. He also mentioned the transfer of ice-type vessels to a Dubai-based company. In addition, he highlighted a record number of Northern Sea Route licenses. According to Humbert, these are indications that the components of the Dark Fleet puzzle are beginning to come together.
In June, the Palau-flagged Asia Energy Co. stole the spotlight as it sailed safely through the Red Sea despite increasing Houthi attacks on merchant ships in the region.
Further Details
The Asia Energy Co. became the first LNG carrier to make such a voyage since January. The 22-year-old ship, renamed in May, is operated by Nur International Shipping. Which is based at the luxury Meydan hotel in the UAE’s free-trade zone. Officials have criticized the company for its lack of transparency and lack of a reputable insurer.
According to Bloomberg tracking data, the Asia Energy Co. was heading to the Mediterranean on Thursday. But it was not carrying any cargo and had no specific destination in mind. According to its website, Nur will enter the energy sector in 2022 and has operated three more LNG carriers since April. Pioneer, New Energy, and Mulan, which companies with Nur’s address own.
The tankers’ insurers are also listed as unknown. Four new-built ice-class ships were transferred to Dubai-based White Fox Ship Management. Russia recently approved the Northern Air, Northern Mountain, Northern Sky, and Northern Way to sail in the Arctic this summer. North Way is currently en route to the Zeebrugge terminal in Belgium to pick up a cargo of Russian gas. White Fox has no formal office and shares one with several other companies, raising more questions about the transparency of its operations.
According to a BBC study, despite sanctions, the UK imports millions of barrels of fuel made from Russian oil. At least three Indian refineries supply Russian oil products to the UK.
