According to Bloomberg, European Union countries want to hit harder against Vladimir Putin's “shadow fleet” and make it more difficult for the Russians who are invading Ukraine to bypass sanctions on the sale of oil.
“The actions considered at the Community level include trade policy, visa policy and the refusal to provide services to flag states of ships belonging to the shadow fleet,” explained Estonian Prime Minister Kristen Michal, quoted by Bloomberg.
As a result of Russia's invasion of Ukraine, the G7 countries and the European Union imposed sanctions on Vladimir Putin's country, which hinder the legal sale of the raw material. That's why Russia created a “shadow fleet” that transports goods under the so-called flags of convenience, masking the country of origin. As we wrote, the “shadow fleet” is also used to illegally export weapons.
- Putin is trapped, and Kyiv and Washington are on the attack. The sanctions avalanche has started. “Two new decisions have been made”
This is how much Vladimir Putin's Russia earns from its “shadow fleet”
According to official data and statements by Russian officials, the share of revenues from oil and gas in Russia's federal budget in 2025 will not exceed 30%. However, this is not the result of profit diversification, but the result of sanctions and less interest in Russian oil.
“Russian oil trading networks are rapidly reorganizing while revenues from oil exports have declined,” wrote analysts from Goldman Sachs.
- Putin's oil in a trap. One move by Trump costs the Kremlin billions and upends global trade. “A cause for concern”
By the end of October, the Kremlin had earned 7.56 trillion rubles (approx. USD 94-95 billion) from fuel sales. That's about 20 percent. less than in the same period last year.
