The imposition of sanctions by Western countries on Russia and the consequent drop in the value of Russian oil is making Putin have to look for other ways to revive his economy. It must be taken into account that Russian imports to the EU, Norway and the UK have fallen by 80% compared to pre-war years. This means that Russia needs new trade allies like China or India and new routes to transport its merchandise.
As we have previously told in Magnetone of these routes is close to Spain, in the waters 20 kilometers from Ceuta, an area that, to the detriment of the countries involved, has become an essential pillar of the commercialization of Russian oil overnight.
What is Russia doing? In order to avoid EU sanctions, Russia is building a “ghost fleet” to be able to transport its oil from one place to another. These ships carry out their transfers in Ceuta and transport between 600,000 and one million barrels of crude which are then transferred offshore to tankers bound for China. Previously, Russian ships made the exchanges in Denmark and the United Kingdom, but both countries have placed limits on Russia.
The problem now falls on Spain, which has tried to prevent these dangerous operations from taking place in its waters, with little success. And it is that the Mediterranean to the south of Spain is a perfect link logistically speaking to sell to China and India, which already represent more than 88% of Russian crude oil sales.
How do they do that? These operations between ships on the high seas are known as STS (ship to ship, in English) and it is a common practice in countries subject to international sanctionssuch as Russia, Iran, and Venezuela. It is not internationally prohibited and therefore can be carried out in international waters. In fact, there are countries like the US that allow it. In our case, Spain does not allow these shipments in its territorial seabut the lack of jurisdiction in international waters allows Putin to continue his activities without running afoul of Western sanctions.
Is it legit? Yes, as they avoid port calls and do not violate international law or sanctions imposed by Brussels. Of course, as long as the ships are in international waters. And Moscow seems to respect, so far, that law: tankers usually stay 12 nautical miles from the coast, at the limit. And, in accordance with the regulation of sanctions against Russia, the Ministry of Transport indicates that it cannot be affirmed that a violation of the norm is taking place.
The Russians also comply with international standards by keeping ships’ beacons lit. According to Bloomberg, except for one of the ships that is Cypriot flagged, the rest do not have the Russian flag but rather Panamanian, mainly. In other words, since they are flagged in third countries, the regulations do not apply to them, in addition to the fact that they carry out the transfer of crude oil in international waters.
What can Spain do? Nothing, beyond monitoring these vessels and preventing technical assistance to them. The only thing you can do is penalize the companies that collaborate with the “ghost fleet”. The Ceuta Maritime Captaincy has already warned at least two local companies dedicated to providing services to ships in the outskirts of the city that they are exposed to sanctions if they provide essential elements to carry out these Russian transfers.
In fact, it caters to Regulation (EU) No. 388/2014which expressly prohibits “providing, directly or indirectly, technical assistance, intermediation or financing services, or financial assistance in connection with trade, intermediation or transportation, including through transshipment between vessels, to third countries of crude oil or petroleum products” originating in Russia.
If they cross the line. Spain could only act if the operations took place in national waters where it could initiate procedures for inspection as well as the retention of the vessel to initiate disciplinary proceedings. Although it is true that, as indicated by some local rumors, in reality there are “basic activities in the port of GibraltarFurthermore, Spain and Morocco have never delimited territorial waters, which leaves holes in the legality that Russia can take advantage of.
A very dangerous practice. Most of the tankers that call at Ceuta are old and their insurance coverage is opaque. This means that cargo spills can occur on the high seas, damaging the marine ecosystem and causing environmental disasters. This is, in fact, one of the reasons why Spain does not allow this practice in its territorial sea. Several environmental groups also point out that there is a risk of damaging several endemic species of the Mediterranean.