My wife is a 60 Minutes junkie. As such, I am oftentimes drawn into many of their stories by marriage. This one kind of caught me by surprise, namely Russia’s “Dark Fleet.”
Apparently, Russia utilizes covert operations circumventing international tracking and Western sanctions to transport Russian oil to buyers who either do not comply with or are willing to operate in the shadows. These sanctions, imposed by the United States, European Union, and our allies, attempt to reduce Russia's revenue from oil, a key funding source for its economy and military operations, especially considering the Ukraine conflict.
The Dark Fleet refers to a network of tankers that disable their automatic identification systems (AIS), effectively disappearing from radar as they transport oil. International law mandates AIS tracking for maritime safety and security, as it helps authorities monitor vessel movements, prevent collisions, and ensure compliance with international regulations.
Russia’s use of a Dark Fleet is in response to sanctions aimed at restricting its oil exports. With sanctions preventing or limiting the sale of Russian oil in Western markets, Russia has turned to countries like China, India, and Turkey, which continue to buy Russian oil despite Western pressure. But the sanctions have not been able to curb the flow of cash from the Kremlin's most valuable asset… oil. Russia is the third largest producer in the world…and this year, its oil and gas revenues are expected to increase 2.6% to nearly $240 billion.
By enabling clandestine operations, Russia can quickly adjust routes, destinations, and even the ownership of the cargo to stay ahead of sanctions enforcement. Using complex networks of shell companies, flag changes, and opaque ownership structures, Russia can hide the true source of its oil shipments, making it difficult for authorities to trace the oil back to its origins. This tactic is particularly important when conducting ship-to-ship transfers, which allow Russian oil to be reclassified as originating from a non-sanctioned country, hiding its true origin thus enabling buyers to claim immunity.
So what can we do about Russia’s Dark Fleet? In two words… not much. We already know that they're doing it in broad daylight. We’re tracking the ships. We know where the oil is going. We who buys it. Sure, we can increase surveillance and enforcement and apply more sanctions to the countries and companies involved but I don’t see much in the way of improvement. What we need to do is keep buying electric vehicles and accelerate the shift to non-fossil fuels like solar, wind and nuclear.
Here's the kicker. According to the CBS report, the U.S is paying Russia $1 billion a year for enriched uranium to fuel our 94 nuclear reactors that provide about a fifth of our electricity. And we’re dependent on them to provide it for the next few years because we stopped making enriched uranium a decade ago.
