Where is Russia Today?

In the wake of international sanctions against Russia, a clandestine fleet of oil tankers has emerged, secretly transporting millions of barrels of Russian crude and fueling the Kremlin's war machine. Known as the "Shadow Fleet," this mysterious armada has been operating in the shadows, exploiting loopholes and weaknesses in the global regulatory system. Our investigation lifts the lid on the Shadow Fleet's inner workings, revealing a complex web of shell companies, proxy owners and clandestine transactions that threaten to undermine the global economy.

As sanctions continue to make life awkward for the Russian economy, after their illegal war in Ukraine, traditional industries are struggling to support the state to the level that is needed to keep the fight going. Industries such as energy, and in particular oil have been targeted by those who wish to support Ukraine. There has been a lot of analysis on the impact of these sanctions, particularly how it has impacted traditional players in this industry; Lukoil, Gazprom Neft and Rosneft.

Much less analysis has been published online however, that looks at what Russia has done subsequently. In order to keep the cash coming in and to keep funding the war, Russia has turned to the Shadow Fleet. The Shadow Fleet are a number of vessels that are being used to obfuscate the Kremlin's control over the oil that they are transporting across the globe.

To read our other articles that dive deeper into Russia avoiding sanctions, click here.

Russia uses a number of holding companies to make investigating ownership more challenging. Let's have a look at one of the vessels being used and how it has changed hands over the last 2.5 years.

Vladimir Arsenyev

The Vladimir Arsenyev (IMO 9901025) is a 3-year-old vessel that has been put to work moving shady Russian oil, since it's construction in March 2022. It has been used to transport oil from De Kastri in Russia to South Korea, China and India. In the 3 years since it's build date, our data shows that it has been registered to 5 different companies. These are Bellatrix Energy Limited (17 Nov 22 - 2 Mar 23), Volition DMCC (21 Apr 23), Ultimate Sprint Limited (27 Jun 23 - 2 Sep 24), Glenbrook Corporation Limited (3 May 24 - 4 Dec 24)and Marion Commodity DMCC.

Reports have also shown the Vladimir Arsenyev has transferred oil to other Russian ships (the Danban (IMO 9294331)). The transfer took place in Nakhoda Bay. These transfers are oft used to hide a cargo's origin. The Danban was chosen as it has so far avoided sanctions. The Danban then went on to the port of Qingdao in China.

The Vladimir Arsenyev currently sails under the flag of Comoros but has also sailed under the flags of Panama and Cyprus in the past.

The United States imposed sanctions on the Vessel on 10 Jan 25. The aim of these sanctions is to increase the difficulty countries face when trying to do business with this ship. The Vladimir Arsenyev joins a list of 183 vessels sanctioned by the USA. Sanctions have also been applied to Ingosstrakh Insurance Company, who have previously provided insurance services to the Vladimir Arsenyev. These sanctions target the tankers responsible for 42% of Russia's seaborne oil exports.

As of 14 May 25, the vessel is off the coast of Russia, near De Kastri.

It's sister vessel is Nikolay Zardonov.

Nikolay Zardonov

The Nikolay Zardonov is another one of the vessels that Russia is using to transport oil. It too has been owned by several companies; Bellatrix Energy Limited, Volition DMCC, Ultimate Spirit Limited and Glenbrook Corporation Limited.

It is currently flying under the flag of Barbados.

As of 10 May 25, the vessel is located off the coast of Russia, near Nakhondka.

Further Info

According to equasis.org, the Vladimir Arsenyev is owned by Stream Ship Management. The UAE based company was set up in 2023. It received tankers from SCF, a previous owner of Vladimir Arsenyev. The UK already sanctions 10 vessels managed by Stream Ship Management. Stream Ship Management is also sanctioned by the USA.

Conclusion

The revelations surrounding Russia's Shadow Fleet expose a complex and clandestine network of vessels, shell companies, and proxy owners that have allowed the Kremlin to circumvent international sanctions and continue to fuel its war machine. The Vladimir Arsenyev and Nikolay Zardonov, two vessels highlighted by the investigation, demonstrate the sophisticated tactics employed by Russia to obscure it's control over the oil trade.

As the international community continues to grapple with the implications of Russia's illegal war in Ukraine, the Shadow Fleet poses a significant threat to the global economy and the integrity of the sanctions regime. The fact that these vessels have been able to operate with relative impunity, exploiting loopholes and weaknesses in the global regulatory system, is a stark reminder of the challenges that lie ahead.

The imposition of sanctions on the Vladimir Arsenyev and other vessels, as well as on companies like Ingosstrakh Insurance Company and Stream Ship Management, is a crucial step in disrupting Russia's ability to evade sanctions. However, it is clear that more needs to be done to prevent the Shadow Fleet from continuing to operate.

The consequences of inaction are dire. If Russia is allowed to continue to exploit the global oil trade, it will not only undermine the effectiveness of sanctions but also embolden other rogue actors to follow suit. The global economy will suffer as a result, and the rules-based international order will be further eroded.

The stakes are clear: either the international community takes decisive action to dismantle the Shadow Fleet and hold the responsible accountable, or it risks allowing Russia to continue to flout international law and undermine global stability. The choice is stark and the consequences of inaction will be severe.