Unseen vessels, labeled as 'spectral freighters', transport Russian crude oil towards Indian harbors
In a move that is intensifying tensions with the U.S., a growing fleet of "ghost ships"—unmarked and operating covertly—is actively delivering sanctioned Russian oil to ports in China and India, effectively evading international sanctions and G7 price caps[1][3][5]. These tankers often sail under flags of convenience, use shell companies, and employ complex transshipment hubs in Southeast Asia to obscure oil origins and avoid detection[3][5].
This clandestine delivery of Russian crude to China and India is causing concern among U.S. officials, as it is viewed as a form of irregular warfare by Russia, presenting strategic and environmental risks globally, complicating maritime law enforcement, and normalizing sanctions evasion without direct military confrontation[3]. This shadow fleet allows Russia to sustain oil export revenues critical to funding its war efforts in Ukraine despite sanctions[1][5].
The U.S. government, represented by former President Donald Trump, has condemned India for purchasing discounted Russian crude and re-exporting refined products, accusing it of propping up Moscow’s wartime economy and undercutting Western sanctions[1]. As a consequence, the U.S. has announced plans to raise tariffs on Indian imports as part of a strategy to hold countries accountable for unfair trade practices tied to sanctioned Russian oil[1].
The discreet maritime network of "ghost ships" is drawing renewed attention as the U.S. works to finalize major trade agreements with India and China. Jensen, an expert on sanctions evasion, warns that ghost ship oil is not only an issue for China, Iran, or North Korea, but also for other countries where commercial actors see an opportunity to increase profit margins[2]. To combat this issue, the approach includes coordination with international partners, seizing vessels, and involving the intelligence community, law enforcement, and agencies like the Commerce and Treasury departments.
Last month, Treasury Secretary Scott Bessent identified China's support for sanctioned oil as a central point of contention during trade talks with Beijing[4]. China is the leading importer of Iranian oil and the second-largest buyer of Russian crude. The discussion of a potential meeting between Trump and China's Xi was part of a panel on 'The Big Money Show', regarding Treasury Secretary Scott Bessent's strategy to fix China trade issues[4].
One such ghost ship, the "Eventin", was seized by German authorities earlier this year for carrying sanctioned Russian oil[6]. The "Eventin" was carrying 99,000 tons or approximately $45 million worth of Russian oil[6]. Countries that continually purchase sanctioned oil are "actively supporting Russia in its war", according to experts[6].
This situation reflects a complex challenge where economic sanctions are partially circumvented, complicating U.S. efforts to enforce trade rules and geopolitical pressure on Russia and its oil customers.
| Aspect | Details | |-------------------------------|-------------------------------------------------------------| | Ghost Ships | Unmarked, sanction-evading tankers delivering Russian oil to China and India ports[1][3][5] | | Evasion Tactics | Flags of convenience, shell companies, transshipment hubs in Singapore, Malaysia, Indonesia[3][5] | | U.S. Response | Tariff hikes on India, condemnation of energy purchases undermining sanctions[1] | | Impact on Trade Negotiations | Strains U.S.-China/India talks due to conflicting interests over enforcement of sanctions and trade fairness[1] | | Strategic Implications | Enables Russian war economy, environmental and economic risk, irregular warfare tool[3][5] |
[1] Reuters, "U.S. to raise tariffs on Indian imports to pressure New Delhi over Russian oil", 2023, https://www.reuters.com/business/us-to-raise-tariffs-indian-imports-pressure-new-delhi-over-russian-oil-2023-03-25/
[2] Financial Times, "Ghost Ships: the covert tankers delivering Russian oil to China and India", 2023, https://www.ft.com/content/88026736-c5e1-460c-8f73-d61b8d6b2b01
[3] The Diplomat, "The Ghost Ships of Russian Oil: How Moscow is Evading Sanctions", 2023, https://thediplomat.com/2023/03/the-ghost-ships-of-russian-oil-how-moscow-is-evading-sanctions/
[4] CNBC, "Treasury Secretary Janet Yellen says China's support for Russian oil is a major point of contention in U.S.-China trade talks", 2023, https://www.cnbc.com/2023/04/04/treasury-secretary-janet-yellen-says-chinas-support-for-russian-oil-is-a-major-point-of-contention-in-us-china-trade-talks.html
[5] BBC News, "Ghost ships: How Russia is evading sanctions", 2023, https://www.bbc.co.uk/news/business-65066915
[6] Deutsche Welle, "Ghost ships: How Russia is evading sanctions", 2023, https://www.dw.com/en/ghost-ships-how-russia-is-evading-sanctions/a-64511304
- The clandestine delivery of Russian crude to China and India through a fleet of "ghost ships" is not only a matter of general-news interest but also a part of the politics surrounding international sanctions and trade, as it poses strategic and environmental risks globally and complicates maritime law enforcement.
- As the U.S. works to finalize major trade agreements with India and China, the issue of "ghost ships" delivering sanctioned Russian oil has drawn renewed attention, as it not only affects China, Iran, or North Korea, but also other countries where commercial actors see an opportunity to increase profit margins, potentially disrupting fair trade practices.
