The EU prepares to counter Russia's shadow fleet: who keeps the ships at sea?

The European Union is preparing to target Russia's so-called shadow fleet in its 21st sanctions package. Analysts highlight that maintaining vessels carrying sanctioned cargo requires port services, seafarers, financial services, and insurance. The role of insurance is particularly significant, as European insurers have withdrawn but the system continues to function.

The European Union is preparing to further pressure Russia's so-called shadow fleet — a fleet that carries sanctioned cargo while evading Western scrutiny — as part of its 21st sanctions package. The question of who actually keeps these vessels operational has become increasingly important.

How the system works

Each vessel in the shadow fleet requires multiple services to operate: access to ports, seafarers, banking services, and insurance. Journalists Zoya Sheftalovich and Sarah Wheaton have delved particularly into the issue of insurance, which has proven to be one of the key factors in this complex system.

The role of insurance in the shadow fleet

Although Europe's largest insurers have withdrawn from Russian shipping, the shadow fleet continues to operate — suggesting the existence of alternative insurance schemes. Experts point out that vessels are insured through companies based outside Western jurisdictions, which makes sanctions enforcement considerably more difficult.

The preparation of the EU's 21st sanctions package signals that Brussels wants to systematically close these loopholes. However, the infrastructure supporting the shadow fleet is dispersed across many countries and jurisdictions, making effective action difficult.