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Shadow fleet is actively used – In May 2024, 220 Russian shadow fleet tankers left ports and three were involved in STS transfers, with 83% of them built more than 15 years ago. Russia uses VLCCs for STS transfers to hide oil origins. From Dec 2023 to May 2024, 14 VLCCs were used; 13 previously carried Iranian or Venezuelan crude, with only 2 having IG P&I insurance.
Reliance on Western services remains low – The reliance on Western maritime services dropped to 32%, with only 12% of crude and 62% of oil products shipped under IG P&I insurance coverage.
India and Turkey led in oil imports – India topped the list in Russian crude oil imports (-13% to 1812 kb/d). Turkey, the top oil product buyer, saw an 11% MoM drop in imports. However, it remained the third-largest crude importer, with an increase of 42% or 120 kb/d MoM.
Vessel designations work, but need to be scaled up – The US Treasury has targeted 41 shadow tankers, with 34 of them currently unloaded and not scheduled for voyages. However, the remaining vessels completed or partially completed voyages with Russian or non-Russian oil, showing Russia's efforts to bring OFAC-sanctioned tankers back into commercial use.
2.8 Nato summit
On July 9-11, the US hosted the 2024 Nato Summit in Washington, D.C. The event brought together all 32 Nato members and 35 partner countries, including Ukraine. The Alliance issued a declaration that recognizes Russia as the most significant and direct threat to Nato allies’ security. Regarding Ukraine’s potential Alliance membership, the declaration states that Nato “will be in a position to extend an invitation to Ukraine to join the Alliance when Allies agree and conditions are met.”
The document also outlines new initiatives to support Ukraine’s fight against Russian aggression, including establishing the Nato Security Assistance and Training for Ukraine (NSATU). This program will coordinate the provision of military equipment and training for Ukraine by Nato members and partners. Additionally, Nato announced the Pledge of Long-Term Security Assistance for Ukraine, whereby allies intend to provide a minimum baseline funding of €40bn ($43.7bn) within the following year. This commitment applies to costs related to the provision of military equipment, assistance, and training for Ukraine, including the purchase of military equipment; expenses related to maintenance, logistics, and transportation of military equipment; and costs for military training. According to the document, the contribution amount will be reevaluated at future Nato Summits.
This year’s Nato declaration also criticized China for enabling Russia’s war against Ukraine. “We call on the PRC, as a permanent member of the United Nations Security Council with a particular responsibility to uphold the purposes and principles of the UN Charter, to cease all material and political support to Russia’s war effort. This includes the transfer of dual-use materials, such as
30 RUSSIA Country Report August 2024 www.intellinews.com