Russia turns to Western tankers as oil prices plummet
Since oil prices fell below $60 per barrel, which is below the price cap imposed on Russia by G7 countries due to its invasion of Ukraine, the Kremlin has increasingly used Western ships for transportation, reducing the reliance on its "shadow fleet," Bloomberg reported.
According to Bloomberg, the share of oil transported by Russia using Western tankers from the Baltic and Black Seas rose to 43% in April, compared to 30% in the first three months of the year.
Oil prices on global exchanges fell after U.S. President Donald Trump imposed high tariffs on imported goods, primarily from China, earlier this month.
In the first week of April, prices for Russian Urals oil fell to their lowest levels since 2023. Oil loaded at the ports of Primorsk and Novorossiysk was sold for about $53 per barrel.
When prices exceeded the $60 per barrel threshold, Russian oil could not be transported by tankers owned by Western companies. This forced Russia to mainly use older ships owned by lesser-known companies, flying flags of exotic countries, even—in cases like Lesotho—those without access to the sea.
The oil price cap has been in place since 2022
Since the introduction of the price cap in December 2022, the "shadow fleet" has ensured the majority of Russian oil exports.
The oil price cap of $60 per barrel was introduced in December 2022 by the G7, the European Union, and Australia in response to Russia's invasion of Ukraine.
