The sale of old ships to Russian entities, potentially used to circumvent sanctions, has raised concerns among European officials. Investigations by German broadcaster ZDF and the investigative journalism platform "Süddeutsche Zeitung" have revealed that numerous ships, many of which were acquired from European shipping companies for high prices, are now part of Russia's "shadow fleet."
The investigations found that over 230 ships, out of a total of 650, in Russia's "shadow fleet" were purchased from European shipping companies. Some of these ships were sold for prices significantly higher than their market value. The Kiel Institute for the World Economy found that these ships were sold after Russia's full-scale invasion of Ukraine in February 2022, when oil prices soared due to sanctions.
Two German shipping companies, Salamon AG and Schulte-Gruppe, have been identified as selling ships to Russian entities. Salamon AG sold its oil tanker "Cup" to a Cypriot company in April 2022. A few months later, Schulte-Gruppe sold its oil tanker "Angelica Schulte" to a Hong Kong company. Both ships were later added to the US government's list of sanctioned Russian entities in late 2024.
Both German companies deny any wrongdoing, claiming that they conducted due diligence on the buyers and did not sell the ships directly to Russian entities. However, the investigations found that the buyers were linked to Russian companies and that the ships were subsequently used in Russia's "shadow fleet."
The German shipping industry association VDR has expressed concern about the sale of old ships to Russian entities, calling it a "worrying trend." The association argues that such transactions could be used to circumvent sanctions and that shipping companies should be held accountable for their actions.
The EU has introduced sanctions on Russia's shipping industry, including a ban on the sale of ships to Russian entities. However, the regulations are unclear and do not explicitly prohibit the sale of old ships to third-party companies, which may then transfer them to Russian entities.
The investigations highlight the challenges of enforcing sanctions against Russia, particularly in the shipping industry. The complex nature of international trade and the use of intermediaries make it difficult to track the movement of goods and vessels.