Fears of Gibraltar spill from shadow fleet carrying Russia’s oil

More than half of Russian crude oil transported on dangerous “shadow fleet” vessels passed through the Strait of Gibraltar this year, raising fears about the possibility of an ecological disaster in British waters.
Between January and June this year 56 million barrels of crude oil — 51.3 per cent of seaborne Russian oil — passed through the strait on tankers that were on average 17 years old, according to a report from the Kyiv School of Economics (KSE) Institute, a think tank.
A further 29.4 million barrels of related oil products also passed through the strait on Russia-linked ships that were on average 19 years old.
Most western oil companies consider scrapping their tankers after 15 years due to wear and tear and the cost of maintenance.
The UK’s territorial waters around Gibraltar extend three nautical miles from the coast of the British overseas territory, with the rest of the strait belonging to either Spain or Morocco.
Accidents seemingly related to the shadow fleet have already occurred near British waters. In February last year, for example, two shadow fleet tankers got into difficulty in the Bay of Gibraltar and had to be aided by tugs and a salvage ship. Both tankers had recently changed names and flag registrations, one to Palau and the other to Gabon.
At least 12 other accidents linked to the shadow fleet have occurred elsewhere in the world since Russia invaded Ukraine.
Separate research from the Centre for Research on Energy and Clean Air, a non-profit think tank, found that the number of shadow tankers passing through the Dover Strait between January and August this year increased by 355 per cent compared with the same period in 2022.
Officials have already raised concerns about the likelihood of a shadow fleet-related spill in European waters. David O’Sullivan, the European Union’s sanctions envoy, warned this year that thanks to the fleet “there is an ecological disaster waiting to happen”, adding that it was “something the international community needs to worry about”.
In July, along with a number of other countries, the UK led a “call to action” to address the risks that the shadow fleet poses to the environment, maritime safety and security in Europe.
In response to the latest findings, a spokesman for the UK Chamber of Shipping said: “A lot is unknown about these vessels. They are clearly old but without any survey evidence, understanding the risks they pose for things such as ecological damage is a challenge.”
A spokesman for the Gibraltarian government said that any major spill in the strait could “potentially kill thousands of seabirds if it happens at certain times of year”.
Fears of an ecological disaster are compounded by the fact that few of the tankers appear to have the requisite insurance to pay for a clean-up in the event that a spill happened.
In a submission to parliament, State Capture, a Dutch non-profit foundation, and the KSE Institute said that an oil spill in the English Channel could cost around £1.05 billion to clean up. However, there is very little information about the insurance coverage carried by shadow tankers, given this is available to the country in which the ship is flagged but not to other parties.
Even then, the Russian insurance sector — which is understood to cover at least some of the shadow fleet — lacks a favourable track record of payouts on spill-liability claims. It is unclear whether some payouts could even be made, due to the sanctions imposed by the UK on the major Russian insurer Ingosstrakh.
In the new report, the KSE Institute calls for a range of new measures to combat the shadow fleet. Specifically, it suggests that tankers failing to comply with proper insurance disclosure requirements, or whose insurance does not meet basic standards, should be automatically sanctioned, rather than on the case-by-case basis currently pursued by most countries.
In September, the UK sanctioned ten more ships found to be related to the shadow fleet, bringing the total number designated by the UK to 25. However, this is still less than the United States, whose own campaign has slowed in the first half of this year.
Of all the methods employed to stop the shadow fleet, specific sanctions have been found to be the most effective. The 74 vessels currently designated by the US, Britain and the EU are estimated to have cost Russia at least $2.5 billion and just five have since been able to complete voyages since being designated.