The western world tried to deprive Russia of profit from it’s oil exports, but Russia has found a way around that. They have a growing fleet that is continuing to transport oil. This is significant because the sanctions imposed by countries aren’t effective in cutting of or curbing Russian oil export. This means Russia has no reason to stop the war in Ukraine because they are still profiting. What’s even more concerning is that there isn’t much public knowledge about the tankers Russia is using for oil transport. This raises many safety and security concerns.
Another impact of this Russian fleet, is that it has split the oil market into two, those that get their oil from Russia and those that don’t . This is significant since Russia is the second largest exporter of crude oil. Hence why gas prices increased as a result of the Russian invasion on Ukraine.
https://www.cnn.com/2023/03/01/business/russia-oil-shadow-fleet/index.html?utm_term=1677718902022353b62d4264e&utm_source=cnn_Nightcap+-+03.01.2023&utm_medium=email&bt_ee=Hvh6rqT2U0nRbbHk%2FvSp1nsUqACxFPwFsvyBm9FELasnc3sFqflW%2B1YvcbA6r5cE&bt_ts=1677718902024
4 comments:
That is very interesting to know as know the EU nations as well as NATO will have to come up with more effective sanctions to discourage Russian from further invasion of Ukraine. Looking forward to hearing what they have to say on this.
I think it will be very difficult for the EU to crack down on this "shadow fleet," given that the tankers are owned and operated by private companies. There are also a lot of environmental risks with shadow fleets as they might not comply with regulations and safety standards. The article points out that this drastically increases the risk of oil spills and other environmental disasters.
I think the article does a good job of telling us that the western world's attempts to curtail Russia's oil exports through sanctions have not been effective. This is evidenced by the fact that Russia has been able to continue transporting oil using a growing fleet, despite the sanctions. The fact that Russia is able to profit from its oil exports may incentivize it to continue its actions in Ukraine, as it has no financial incentive to stop. This could prolong the conflict and lead to further destabilization in the region. Additionally, the lack of transparency surrounding the tankers Russia is using for oil transport raises safety and security concerns.
Although the use of these 'shadow fleets' is deplorable from an ethical and environmental standpoint, the incentive to use them in order to acquire oil at greatly cheaper prices than the alternatives is certainly incredibly lucrative, and I therefore completely understand the incentive behind the emerging black market of Russian oil.
Post a Comment