Amid Sanctions Storm, Tens of Millions of Tons of Russian Oil Find a ‘Loophole,’ Quietly Slipping Across the Globe to Generate Over $5 Billion

A groundbreaking report reveals that over 100 vessels flying false flags have covertly transported Russian oil across the globe, generating more than $5 billion in revenue despite international sanctions.

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A new report released on November 27 by the Centre for Research on Energy and Clean Air (CREA), a Finland-based research organization, reveals that Russia is significantly increasing its use of ships flying false flags to evade oil-related sanctions.

According to data compiled by CREA from ship ownership and flag registration records, a total of 113 Russian vessels have flown flags inconsistent with their true nationality in the first nine months of this year. These ships transported approximately 11 million tons of oil, valued at €4.7 billion (equivalent to $5.4 billion), as reported by Oil Price.

Luke Wickenden, co-author of the report, expressed concern over the alarming rise in false flagging. “The number of Russian oil tankers operating under false flags is increasing at a disturbing rate,” he emphasized.

The research team found that 90 vessels were operating under false flags in September 2025, a sixfold increase compared to December 2024. Of these, 52 ships conducted at least one transaction in the third quarter of 2025.

CREA’s analysis highlights that 30 such vessels transported crude oil to India during the first nine months of 2025, with an estimated value of $2.4 billion.

This fleet, often referred to as the “shadow fleet” or “ghost fleet,” consists of ships used by Russia to evade monitoring on strategic shipping routes. Flying flags of other nations allows these vessels to bypass scrutiny, particularly as the EU and UK tighten sanctions on Russian oil.

CREA’s report indicates that from the beginning of the year to the end of September, 96 sanctioned ships flew false flags at least once. This practice exploits loopholes in the flag registration systems of smaller nations or those with limited oversight capabilities.

International experts note that CREA’s findings align with previously observed trends. Rachel Ziemba, an expert at the Center for a New American Security (CNAS), attributes Russia’s expanded use of evasion techniques to mounting pressure from EU sanctions and China’s crackdown on “zombie ships”—vessels using registration numbers of decommissioned ships.

However, Ziemba cautions that tightening sanctions is not a straightforward solution. Illicit oil trade is on the rise, complicating monitoring efforts. Additionally, stricter measures could carry geopolitical risks, including potential retaliation from major buyers of Russian oil, such as China.

Source: OilPrice

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