Planet Money How Russia’s shadow fleet is sailing around oil sanctions
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Oct 17, 2025 This conversation features Michelle Vesey Bachman, a maritime intelligence specialist known for her insights into ship movements and shadow fleets. The discussion reveals how a network of old, reflagged tankers is smuggling Russian oil despite sanctions. Michelle elaborates on tactics like fake insurance and opaque ownership structures used to evade detection. The shadow fleet, now over 600 vessels, is reshaping global oil markets and poses environmental risks, creating a complex dilemma for maritime authorities.
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Price Cap Relies On Insurers
- The G7 designed the $60-a-barrel oil price cap to let Russian oil flow while reducing revenue to Moscow.
- Enforcement relied on private marine insurers refusing coverage above the cap rather than direct naval policing.
Shadow Fleet Built With Shell Companies
- Russia and allies built a shadow fleet by buying old tankers via middlemen and hiding ownership in nested shell companies.
- This complex structure obscures who owns ships and where cargo originates, thwarting transparency.
Fake Insurance Enables Evasion
- Shadow vessels used fake or non-existent insurers to appear compliant while lacking real coverage.
- Without legitimate insurance, these ships evade the main enforcement lever of the price-cap regime.