At the start of July 2023, the once sizable tanker capability tied to Indian-flagged Gatik Ship Management had been significantly diminished as sanctions began to bite. Bloomberg, drawing on the international shipping database Equasis, reported that only a handful of vessels remained in operation from the original fleet that had been used to supply crude to buyers around the world. In total, four ships persisted in operation, a stark contrast to the company’s earlier capacity, highlighting how international pressure and market access constraints affected a private sector player once deeply embedded in the global oil transport network. The story underscores how a single shipping concern can become a focal point of broader geopolitical maneuvering, impacting supply chains far beyond its immediate operations.
In April, as sanctions by Western powers tightened, an Indian-based company assisting Moscow in moving crude oil by sea under those sanctions still operated a fleet of 42 tankers, according to the same reporting. Yet by July, the fleet had contracted dramatically, with entries noting a loss of access to vehicle insurance and other support services necessary to maintain a large, credit-heavy fleet. The underlying cause lay in the enforcement of a price cap on Russian oil—set at $60 per barrel by Western allies—which narrowed options for insurers, lenders, and operators who previously enabled the shipping of Russian crude. This tightening of financial and logistical channels forced many vessels out of service or away from sanctioned trades, even when they could physically carry oil. The effect on fleet numbers reflected not only regulatory risk but also a chilling of commercial confidence across the maritime sector, as insurers and reinsurers recalibrated risk exposure and compliance teams tightened procedures across voyages. The broader implication was a chilling reminder that sanctions can erode the operational capacity of state-aligned shipping networks and push them toward more opaque arrangements in order to evade scrutiny and continue business.
Despite the reduction in fleet size, the remaining ships continued to carry oil from Russia, albeit within a far more constrained and uncertain operating environment. The four vessels that persisted were reported to be controlled by foreign entities of various, and in some cases uncertain, origins. This distribution of ownership and control points to the layered complexity of the European and global maritime markets, where ownership can be dispersed across multiple jurisdictions and corporate structures, sometimes complicating enforcement and due diligence. The situation illustrates how sanctions can create a web of challenges for verification and compliance, even for vessels that technically remain active in sanctioned trades. Analysts and observers have stressed that while the physical transport of oil may persist, the economic and regulatory pressures are reshaping how and with whom oil moves on the world’s oceans.
In a separate development, news outlets in the United States and Europe flagged the EU’s intention to widen sanctions with a focus on the so-called shadow fleet that quietly carries Russian crude to customers while attempting to obscure the origin of their cargoes. The aim of these measures is to close loopholes that enable certain vessels to operate under looser oversight, thereby undermining the effectiveness of formal price caps and export controls. The narrative around the shadow fleet has grown more prominent as the maritime industry and policymakers seek to improve transparency and traceability in crude deliveries. Observers note that such sanctions are part of a broader strategy to limit Russia’s revenue streams from oil while maintaining stability in global energy markets through careful calibration and monitoring. The discussions underscore the delicate balance policymakers must strike between punitive measures and the potential for unintended consequences in global supply chains. When such fleets are exposed to tighter controls, market participants adjust by shifting routes, reevaluating insurance relationships, and seeking new counterparties willing to operate under stringent compliance standards.
The ongoing discourse around Russia’s tanker operations, including the shadow fleet, reflects broader themes of international finance, sanctions enforcement, and maritime risk management. The cumulative effect of reduced fleet capacity, stricter insurance terms, and price-cap enforcement has real consequences for moving crude oil globally. Analysts caution that even as some ships keep trading, the costs and risks associated with sanctioned routes are higher, potentially affecting shipping rates, cargo availability, and the timing of deliveries. In this broader context, the four remaining vessels still form a link in a chain of supply that is subject to ongoing scrutiny, measurement, and adjustment by regulators, insurers, and the buyers who depend on steady access to crude supplies from Russia. This dynamic illustrates how policy choices in distant offices can ripple through ports and shipyards, insurance markets, and the very economics of crude transport for years to come. (Bloomberg via Equasis; Politico reporting noted the EU’s planned measures to curb the shadow fleet.)