Crude Awakenings: India's Ties to Russia's Shadow Fleet

While we have written about how the Russian Shadow Fleet has allowed Russia to generate huge sums of money for the country, it is worth noting that every trade has two parties, so someone else is profiting from Russian deceit.

The data we have studied, shows that there are some countries disproportionally involved in Shadow Fleet transactions, such as Greece, who we have discussed in a recent article. There is however one country that stands above all others - India! According to a recent report by the KSE Institute, India is the recipient of 53% of Russian seaborne crude imports. Of course, Russian crude oil still needs to be refined, and handily there is capacity in India, such as at the Nayara refinery. Said Nayara Energy refinery, is by total coincidence, financed and part owned by Rosneft, the Russian state-controlled oil producer.

The use of the Russia Shadow Fleet to facilitate operations at Nayara is quite blatant; at time of writing, two Shadow Fleet tankers are docked at the facility. These tankers are the Ocean Autumn and the Varg, the former sanctioned by the UK, and the latter by the UK and EU. Interestingly the Ocean Autumn has been highlighted to us in previously received data, which showed it was operated by Guron Trading Ltd, of whom we have written about in previous articles.

Unfortunately for the Nayara refinery, dealing with dirty Russian oil as your core business, comes with risks, and last month those risks became a reality. On 18th July, the EU imposed sanctions on Nayara for support of Russia's war in Ukraine. Since then, business at the terminal has been devastated; mass contract cancellations from shipping companies, early terminations of agreements, and technology partners like Microsoft suspending essential services. As a result, the refinery has been forced to reduce its oil processing volumes drastically, and deliveries to its subsidiary gas stations are threatened. The State Bank of India has also stopped processing trade and foreign currency transactions for the facility, forcing it to hurriedly seek out other, less impressive partners.

It is not just the EU that has taken aim at India over dirty Russian oil. In July President Trump imposed a 25% reciprocal tariff on Indian goods, with additional penalties tied to India's energy and defense ties with Russia. The President specifically framed India's oil imports as directly funding the Russian war machine. By August the President escalated the measures further, bringing tariffs up to a remarkable 50%!. What impact this will have remains to be seen, but the pressure must be on India to rethink how much value its shady deals with Russia are actually worth.

The batch of data we received previously, which had identified the Ocean Autumn and Guron Ltd, also contained details of hundreds of other probable Shadow Fleet shipments with Indian connections. According to the data, the following companies were acting as ISM Management for probable Shadow Fleet vessels:

• Akkrum Ship Management
• Albus Ship Management
• Amogha Ship Management
• Anagha Ship Management
• Anilah Ship Management
• Anshula Ship Management
• Atos Remote Solutions
• Atya Ship Management
• Ayaan Shipping PVT Ltd
• Beacon Ship Management
• Bernhard Schulte-IND
• Bisu Marine & Shipping
• Bixia Ship Management
• Bluewave Shipping Co
• Charai Sea Shipping PVT Ltd
• Chenab Ship Management OPC
• Eastern Euro Ship Management
• Executive Ship Management
• Flare Marine Management LLP
• Flux Maritime LLP
• Fujin Shipping & Marine
• Gacrux Maritime PVT Ltd
• Godavari Ship Management OPC
• Hubal Marine Ship Management
• Loadlin Ship Management PVT
• Margao Marine Solutions OPC
• Meegaman Maritime PVT Ltd
• Nike Shipping Corp
• Northpole Marine
• Pambai Shipping PVT Ltd
• Peninsular Maritime India PVT
• Pinaka Ship Management
• Pinyin Ship Management
• RM Ship Management PVT Ltd
• Scorio Marine Management
• SU-Nav SMEA PVT Ltd
• Tech Marine Services
• Upgard Management Services SA
• Varuna Ship Management
• Vembanad Shipping PVT Ltd
• Vigor Marine Services LLP
• Vijaynagar Voyage Shipping PVT
• Vika Line Marine Services PVT

Most of the registered owners of vessels for whom the are acting as management, are seemingly located in the Seychelles, Mauritius and Marshall Islands - locations know for their lax regulation, and reputation as 'secrecy jurisdictions'.

In conclusion, the evidence is clear - India's shipping industry is deeply entwined with Russia's Shadow Fleet, with numerous companies facilitating the transportation of sanctioned oil. The EU's recent sanctions on Nayara Energy refinery serve as a stark warning to others who continue to profit from Russia's illicit activities. As the international community tightens its grip on Russia's oil exports, it remains to be seen how Indian companies will respond to the increasing scrutiny. Will they continue to prioritize profits over principle, or will they take steps to distance themselves from Russia's shadowy oil trade? Only time will tell, but one thing is certain - the spotlight is now firmly on India's shipping industry, and its role in enabling Russia's war machine.