Russian oil continues to flow to Europe via waters off Greece

The West has sanctioned Russia over its invasion of Ukraine, but Russian oil continues to flow to Europe via hidden maritime routes.

A Nikkei analysis found that in the six months since Russia's invasion of Ukraine began, 41 vessels made ship-to-ship transfers of oil off the coast of Greece with tankers that left Russia and later arrived at European ports. There was only one such vessel last year, Nikkei reports.

The European Union and the UK will completely ban imports of Russian oil from around the end of the year, but companies that buy Russian oil already face criticism. Transferring oil between ships at sea to hide its origin may continue even after the oil embargo takes effect.

On August 24, Nikkei photographed the transfer of oil from one tanker to another in the Laconian Gulf near southern Greece. One tanker was the Greek-registered Sea Falcon, which left the port of Ust-Luga, an oil shipping terminal in northwestern Russia, on August 4. The other was the Indian-flagged Jag Lok, which departed from the Turkish port of Aliaga on August 4. Small boats surrounded the tankers, assisting with the transfer.

Where is the oil going? To look into the seaborne transport of Russian oil, Nikkei used data from British data company Refinitiv to see where tankers that left Russian ports, starting on February 24, went and which vessels contacted them.

The survey covered waters off the Mediterranean coast of Greece, where ship-to-ship transfers frequently take place. Automatic Identification System (AIS) signals from vessels were tracked to identify their routes. Changes in the vessels' draft - the distance from the waterline to the bottom of the hull, which increases when a ship is heavily laden - were also checked to determine the number of ship-to-ship transfers.

Over the six months through August 22, Nikkei confirmed 175 transfers off the Greek coast involving tankers from Russia. There were only nine such transfers during the same period last year. Refinitiv data shows that Russia exported 23.86 million barrels of oil for ship-to-ship transfers off Greece. During the same period last year, 4.34 million barrels were shipped for similar transfers.

The question is where the tankers that received the oil went after taking on their loads.

Nikkei tracked the routes of the ships, confirming that 89 tankers arrived at ports, while only three such calls were made last year. Of those, 41 arrived at ports in Greece, Belgium and elsewhere in Europe. Only one tanker did so last year. Two tankers made port calls in Britain, which is a staunch advocate of economic sanctions against Russia. The survey highlighted the crucial role that waters near Greece play as a hub for oil shipments between Russia and Europe.

The EU will completely ban imports of Russian oil by sea from February 2023, while the UK will completely embargo Russian oil in December. According to the International Energy Agency, Russian oil exports to the EU in July totalled 2.8 million barrels per day, down 26 per cent compared with January. While purchasing Russian oil remains legal, companies are reviewing their relations with Russia as governments and markets monitor them.

Nikkei also analysed shipments of oil that arrived in Britain in June. Using Refinitiv's route and draft data, as well as satellite images from US company Planet Labs, Nikkei found that a Maltese-flagged tanker that took on oil off the Greek coast from two tankers that left Russian ports arrived at Immingham, in eastern Britain, on June 4.

Records from European energy research company Kpler show that the tanker carried 300,000 barrels of oil produced by Russia's state-run oil producer Rosneft. Swiss-based commodity trading house Trafigura brokered the oil and sold it to Prax Group, a medium size British oil wholesaler.

Nikkei visited the group's headquarters in Britain and asked for information about the transaction. The company responded, saying, "Prax Lindsey Oil Refinery cannot comment on operationally sensitive information about individual shipments. We are working closely with the UK government and can confirm that we are fully compliant with all relevant sanctions."

Replying to an email inquiry, Trafigura said, "We engage openly and regularly with our customers and relevant governments to understand their requirements and ensure we deliver material that meets those requirements." Rosneft did not respond to a request for comment.