Russia turns to Western ships as oil prices contract
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 is increasingly using Western ships to transport its oil. This reduces the participation of 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, at the beginning of the month.
In the first week of April, prices for Russian Urals oil dropped to their lowest levels since 2023. For oil loaded at the ports of Primorsk and Novorossiysk, it was necessary to pay about $53 per barrel.
When prices exceeded the threshold of $60 per barrel, Russian oil could not be transported by tankers owned by Western companies. This forced Russia to transport oil mainly using older ships owned by little-known companies, often using flags of exotic countries, even—as in the case of 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.
