Panama Cracks Down on Russia`s Shadow Fleet to Block Sanctions Evasion

Panama is tightening ship registration rules to combat the use of a “shadow fleet” to circumvent sanctions on the transport of Russian oil, The Gaze reports, citing the Foreign Intelligence Service of Ukraine.

This month, Panama plans to stop registering oil tankers older than 15 years in order to tighten control and prevent the use of obsolete vessels in shadow schemes for the transportation of Russian oil.

Such a move will have a significant impact on global maritime trade, as Panama is the second-largest commercial ship registrar in the world. In addition, there are plans to conduct regular inspections of Panamanian-flagged tankers every three months to ensure they comply with certification requirements.

The new rules will particularly affect Russia's “shadow fleet,” whose average age is 20–25 years, which significantly exceeds the established limit.

It is also reported that two weeks ago, the Bahamas Maritime Authority announced the removal from the register of ships owned by or associated with Russian companies and sailing under the Bahamian flag, especially if they fall under sanctions.

The Russian “shadow fleet” is a group of ships with hidden ownership that are used to circumvent international sanctions, in particular for the illegal transportation of oil and other resources. These ships avoid registration and control by Western countries, making it difficult to track them and apply sanctions.

As The Gaze informed earlier, the European Union has adopted its 18th package of sanctions against Russia, which, among other things, focuses on combating Russia's “shadow fleet.” The sanctions apply to 105 vessels and the organizations that support them, significantly increasing pressure on Moscow's ability to circumvent international restrictions and finance the war in Ukraine.