Greek Shipping Giants: In a strategic move to avoid the tightening grip of U.S. sanctions on shipping firms transporting Russian oil, three major Greek shipping companies—Minerva Marine, Thenamaris, and TMS Tankers—have recently halted their involvement in the trade. This significant development further narrows the options for shipping Russian oil to regions such as Asia, Turkey, the Middle East, Africa, and South America. Despite this setback for Russia, traders note that Moscow still has sufficient shipping firms at its disposal, at least for the time being.
The decision by Minerva Marine, Thenamaris, and TMS Tankers to step back from transporting Russian oil follows the imposition of stricter U.S. sanctions on such shipments. In October, the U.S. implemented its initial sanctions on tanker owners in Turkey and the United Arab Emirates involved in transporting Russian oil exceeding the G7’s price cap of $60 per barrel. The move aimed to limit Russian export revenues, and in recent weeks, additional sanctions have been placed on more ships.
These Greek shipping giants, which had been actively involved in shipping Russian oil for decades, began reducing their participation in the trade in September-October. They declined requests for vessels for Russian crude loading in November and beyond, signaling a deliberate scaling down of their roles. The decision reflects the escalating risks associated with the tightening sanctions regime.
The U.S. and G7 countries had introduced a price cap on Russian oil in late 2022, setting it at $60 per barrel. However, this cap had not been rigorously enforced until recently. The cap was designed to limit the revenue Russia could generate from its oil exports. Despite the efforts, Russia’s main export grade, Urals, has consistently traded above the $60 per barrel cap since mid-July, indicating challenges in enforcing the imposed restrictions.
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The routes for transporting Russian oil have historically been lucrative, attracting substantial revenues for those willing to navigate the associated risks. The three Greek shipping companies operated more than 100 oil tankers capable of handling a significant portion of Russia’s European oil exports. These routes have witnessed high freight rates, reaching as much as $15 million per tanker voyage, highlighting the lucrative nature of the trade.
Despite the exit of the Greek shipping giants, Russia is adapting by relying on alternative shipping companies. Sovcomflot, Russia’s state-owned shipping company, is playing a crucial role, along with various lesser-known shipping firms registered in locations such as the UAE, India, Hong Kong, Seychelles, and Ghana. These vessels, flying flags of different states, are part of the so-called “dark fleet,” a term used for shippers moving oil from sanctioned countries like Russia and Iran, operating outside the coverage of Western insurance.
The evolving dynamics in the shipping landscape underscore the complex interplay of geopolitical factors and economic interests, impacting the global oil trade and the strategic choices made by shipping companies in response to shifting sanctions regimes.