In a notable shift within the global maritime industry, Greek shipowners are rapidly withdrawing from transporting Russian crude oil, a response to heightened US sanctions aimed at disrupting Russia’s petroleum exports.
Recent data has highlighted a stark decrease in the activity of Greek-owned tankers in this trade, with numbers falling to eight in January from a peak of more than 40 in May of the previous year. This exodus is largely attributed to the US Treasury’s increased scrutiny over compliance with a Group of Seven (G7) price cap on Russian oil, coupled with sanctions against entities involved in the Russian oil trade.
The US government, in November, issued notices to maritime companies in approximately a dozen countries, inquiring into their compliance with the $60 per barrel cap on Russian oil. This move, followed by sanctions on firms trading Russian oil and those facilitating its transport, has injected a degree of caution among Greek shipowners. The situation has led to a strategic reassessment of their involvement in the Russian crude market, reflecting the complex risk landscape shaped by geopolitical tensions and regulatory pressures.
The withdrawal of Greek-owned vessels is particularly noticeable in the trade of Russian crude from Pacific terminals to major Asian buyers, such as China and India. Greek tankers, once active in transporting premium Russian oil grades like ESPO and Sokol — which trade well above the G-7’s imposed price cap — have now vanished from this segment. This retreat underscores the impact of the sanctions regime and the G-7 price cap on shipping strategies, forcing a reevaluation of participation in these trades.
This reduction in Greek shipping capacity places additional pressure on Russia’s own fleet and the emergent “shadow fleet” — an assortment of vessels developed to help Russia sidestep Western sanctions. With Europe no longer a viable market for a significant portion of Russian crude, due to sanctions, Russia has had to pivot towards Asia, relying on longer and more complex shipping routes that demand a greater number of vessels.
This logistical challenge is compounded by security risks, including attacks on shipping by Houthi militants in key maritime zones like the southern Red Sea and the Gulf of Aden, further complicating the delivery of Russian oil to its remaining buyers.
The broader implications of the Greek withdrawal from Russian oil trade are multifaceted, affecting not only the maritime industry but also global oil supply chains. As the shipping sector continues to navigate through the geopolitical and regulatory challenges presented by the sanctions on Russia, the dynamics of global oil trade and the strategies of maritime companies are in a state of flux.
This situation underscores the interconnectedness of international politics, energy markets, and the global shipping industry, highlighting the complex challenges and considerations that come with maintaining energy flows amid escalating geopolitical tensions.
